Glenmark drops 20% as Lilly suspends drug trial

India's Glenmark Pharmaceuticals says that further clinical development of the osteoarthritis painkiller GRC 6211 has been suspended by its partner, US drug major Eli Lilly. The firms say they are "in discussions on the way forward." On the day of the news, October 24, shares in Mumbai-based Glenmark dropped 20% to 324.05 rupees.

Under the terms of their October 2007 agreement, Lilly acquired the rights to a portfolio of transient receptor potential vanilloid sub-family 1 (TRPVI) antagonists, including GRC 6211, which was in an early Phase II study at the time. The collaboration covers all blockers of the ion channel protein discovered by either company. Under the terms of the deal, Glenmark received an upfront fee of $45.0 million and could get up to an additional $215.0 million in potential milestones for GRC 6211's first indication.