Glenmark receives upfront payment of EUR 25 million from Merck KGaA for GRC 8200

Glenmark Pharmaceuticals Ltd has announced that Glenmark Pharmaceuticals S.A. [GPSA], the wholly owned Swiss subsidiary of the Company has, after the antitrust clearance in the US, received EUR 25 million from Merck KGaA, Darmstadt, Germany in Q3 FY2007. This constitutes the upfront payment under the recently concluded collaboration agreement for Glenmark’s DPP-IV inhibitor GRC 8200 between the two parties.

GRC 8200 is a novel, oral DPP-IV inhibitor and Glenmark’s lead molecule for Type II Diabetes. It is currently in Phase II clinical trials in South Africa and India. Under the agreement, Merck KGaA will develop, register and commercialise GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialisation rights for India. The partners will share commercialisation rights for other markets in the remainder of the world. Merck KGaA will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future. The value of all payments to Glenmark could total up to EUR 190 million, including the EUR 25 million upfront payment [just received] and various milestone payments upon successful development and launch of mono-therapy and combination products based on GRC 8200. Upon commercial launch, Glenmark will supply the active ingredient to Merck and will receive royalties on net sales of the product.

Source : Equity Bulls

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