Emkay Global Financial Services recommends `Hold` on Glenmark Pharma with a price target of Rs 214 as against the current market price (CMP) of Rs 222 (Nov.16, 2009).

The broking house highlights, Glenmark has entered into an agreement with Medicis Pharmaceutical to co-develop and commercialize a speciality product in North American region. The product is mainly for the treatment of acne vulgaris which has a market potential of USD 500 million (as per company).

The broking house said, `Glenmark has received an upfront milestone of USD 5 million and is expected to receive additional payments upon achieving certain development milestones and royalty upon commercialization of the product. Glenmark (Q,N,C,F)* expect this molecule to be commercialized in next 2-3 years.

Along with this outlicensing deal, the company has also entered into a Para IV settlement with Medicis for the generic version of Vanos and Loprox. As per the settlement, Glenmark will be able to market and distribute its generic version of Vanos as early as December 2013, or earlier in certain circumstances where as for Loprox, Glenmark will have a license to launch a generic version immediately.