Glenmark Pharmaceuticals Ltd said on Friday it had received an interim order from a

RELATED ARTICLES Glenmark Q4 net up 33% at Rs 150 cr

US arbitration panel against US-based Napo Pharamaceuticals Inc's termination of a collaboration pact for an HIV-associated diarrhoea drug.

The pact, signed in July 2005, had conferred exclusive rights to Glenmark to develop, commercialize and distribute the drug, Crofelemer, in 140 countries.

The move provides interim relief to Glenmark, which recently started trials of the drug to treat cases of adult acute diarrhoea, including cholera.

The arbitration panel will hold its next hearing by the end of March, Glenmark said.

Napo terminated the pact on November 10, after which Glenmark sought an arbitration.

Glenmark developed Crofelemer with Napo and US-based Salix Pharmaceuticals Ltd. Napo was the initial developer of the molecule and licensed it out to Glenmark and Salix.

According to the licensing agreement, Salix would sell the drug in regulated markets such as North America, Japan and Europe and Glenmark would sell it in 140 other countries.

Glenmark shares, which rose as much as 2.6% on the news, were trading 1.81% higher at 309.60 at 1:01 p.m. (0731 GMT). The overall market was up 1.04%