Glenmark gets bitter pill to swallow

The taste has turned bitter for Glenmark Pharma today. The stock is down almost 2% at Rs.817 with an intra day low at Rs.797.50.  And on Friday, it has hit a new high at Rs.879.05.

This turnaround in moods happened on news report that the Delhi High Court has restrained the company from making and marketing anti-diabetes drug, Zita, Zita-Met. This restraint has come after the court said that it has prima facie evidence that the company has infringed Merck’s patent in the same category of anti-diabetes.

For now, the Court has allowed Glenmark to sell the existing stock. Naturally, the company has stated that it will seek legal advice on the course of action needed to be taken.

This restraint comes after Merck had sought an intervention from the High Court as it said that it was Merck which had invented the salt, Sitagliptin, which is used in the anti-diabetes drug manufacture and has patent over this molecule.