Glenmark Pharma shares gain on FDA nod to key generic drug

Glenmark Pharmaceuticals shares gained over 2 per cent on Tuesday after the company received a surprise approval from US FDA for Ezetimibe, the generic version of Merck-Schering Plough's cholesterol lowering drug 'Zetia'.

According to market analysts, the drug has US sales of $1.8 billion. Ezetimibe may generate $250 million in cash flows for Glenmark during the exclusivity period.

Shares of the drug maker closed at Rs 993.50 apiece, up 2.12 per cent against their previous close.

CLSA has set a target price of Rs 1,060 for the scrip. According to the investment firm, the pharma major is at the cusp of a revival with pick-up in US approvals.

For the year ended March 2015, Glenmark Pharmaceuticals registered consolidated net profit of Rs 475.31 crore, down 12.35 per cent against Rs 542.28 crore last year.

(With inputs from Reuters)