Glenmark Pharmaceuticals

Cluster: Apple Green

Recommendation: Buy

Price target: Rs285

Current market price: Rs230

Glenmark announces some positive deals with Medicis
Glenmark Pharmaceuticals (Glenmark) has made a series of announcements regarding its patent settlement (Vanos), abbreviated new drug application (ANDA) approval (Ciclopirox) and outlicencing deal (a specialty pharmaceutical product with milestone revenue of $5 million) with US-based Medicis Pharma (Medicis) for different sets of dermatology-based products. We have analysed the event on a singular basis and believe that the deals are positive in terms that Glenmark is increasing its foothold in the US market?s dermatology segment where it has about 13 products in its pipeline. However, any substantial gain from these deals is yet on the sidelines as the deal would generate meaningful revenue only after a couple of years.