Glenmark Pharmaceuticals has decided to quit clinical trails for its experimental Osteoarthritis molecule development. 

Further, its partner Eli Lilly has also suspended further clinical development for GRC 6211, used in Osteoarthritis pain. The Glenmark deal with Eli Lily on GRC6211 was potentially worth USD350 million.

Last October, Glenmark had agreed to sell the marketing rights for its experimental pain treatment molecule to Eli Lilly for an upfront fee of 45 million dollar. 

Under the agreement, Eli Lilly was to have the right to sell the compound -- GRC 6211 -- in North America, Europe and Japan, while Glenmark would retain the marketing rights for the rest of the world. 

Glenn Saldhana MD and CEO Glenmark Pharma said that, both partners are currently in discussion on the way forward and the GRC 6211 suspension doesn’t affect the company’s guidance for FY09 or FY10.

With the latest announcement, Glenmark plunged nearly 19.99 per cent to hit its lower circuit of Rs 324.05 on the BSE.