Shares of this pharmaceutical company jumped around 2 percent in Thursday’s trading session after signing a license agreement with Jiangsu Alphamab Biopharmaceuticals and 3D Medicines (Beijing). The shares have delivered a multibagger return of 127 percent to its shareholders in one year.
With a market capitalization of Rs. 25,562 crores, the shares of Glenmark Pharmaceuticals Ltd started Thursday’s trading session on a flatter note at Rs. 890.90 compared to its previous close of Rs. 890.20. During the trading session, the shares hit a high of Rs. 913.50, gaining around 2 percent and are currently trading at Rs. 902 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that one of its subsidiary companies Glenmark Specialty S.A. (GSSA), had signed a license agreement with Jiangsu Alphamab Biopharmaceutical and 3D Medicines Ltd (together as the Licensors) for KN035 (Envafolimab) in the stated territory.
Under the terms of the agreement, GSSA will receive an exclusive license to develop, register, and commercialize, Envafolimab for the oncology indication in India, Asia Pacific, the Middle East and Africa, Russia, CIS, and Latin America from Jiangsu Alphamab and 3DMed.
Furthermore, Jiangsu Alphamab will be the exclusive supplier of the product and they (on behalf of the Licensors) will receive a low double-digit Million US Dollar amount up to launch, additional triple digit Million US Dollar milestone payments based on sales performance across the length of the agreement, and a royalty fee of single-to-double-digits percentage according to the level of net sales.
KN035 (Envafolimab Injectable) is a recombinant single-domain antibody against PD-L1 fused with human Fc, a drug independently invented by Alphamab Oncology and co-developed with 3DMed Beijing in 2016.
Envafolimab, under the brand name ENWEIDA, was approved in China by the National Medical Products Administration (Chinese NMPA) in November 2021 as the global-first subcutaneous injection PD-L1 inhibitor for the treatment of adult patients with previously treated microsatellite instability-high (MSI-H) or deficient MisMatch repair (dMMR) advanced solid tumour.
Coming onto the company’s financial statement, the revenue increased marginally by 6 percent from Rs. 3,036 crores during the June quarter to Rs. 3,207 crores in the September quarter. On a contrasting note, the company recorded a net loss of 62 crores in the September quarter compared to a net profit of Rs. 173 crores in the June quarter.
Earlier, Glenmark Pharmaceuticals had signed an agreement with a Japanese firm to manufacture and supply Active Pharmaceutical Ingredients (API) in the urinary anti-spasmodic therapeutic area for a global innovator.
Headquartered in Mumbai, Glenmark Pharmaceuticals Ltd is a global research-led pharmaceutical company with a presence across generics, Specialty and OTC business with operations in over 80 countries.
Written By Vaibhav Patil
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