Financial Daily from THE HINDU group of publications
Thursday, Jan 15, 2004
Financial Daily from THE HINDU group of publications Thursday, Jan 15, 2004 |
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Corporate
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Announcements Glenmark Pharma inks $80-m deal with US company Our Bureau
Mumbai , Jan. 14 GLENMARK Pharmaceuticals Ltd on Wednesday intensified its plans for the world's largest generic drugs market, the US. The company on Wednesday announced that its wholly-owned subsidiary, Glenmark Pharmaceuticals Inc, had entered into a product development and marketing license agreement with the US-based speciality pharma firm, K.V. Pharmaceutical Company. In a deal estimated to be over $80 million, Glenmark will initially develop and supply eight generic products for regulatory approval and marketing in the North American markets through K.V. Pharmaceutical, Mr Glenn Saldanha, Managing Director, Glenmark Pharmaceuticals, said here. The total revenue is expected to accrue to Glenmark over a period of 10 years, he added. Speaking to Business Line, Mr Saldanha said, "The company is looking to grow its operations in the US through partnerships, as it is ground zero for us." Glenmark now joins the league of Indian drug majors such as Ranbaxy and Dr Reddy's Laboratories that had trained their guns on the US market. However, unlike Glenmark, which is essentially getting off the blocks in the US market, companies like Ranbaxy have achieved a critical mass in this market and are in fact putting in place secondary strategies for other potential markets such as Europe. Unwilling to divulge details on the segments that the deal covered, Mr Saldanha said that the company would get an initial cash payment for licensing its drugs, following which it would get milestone payments on different stages of development and royalties from the sale. The generic products under this agreement have annual branded sales in excess of $2.5 billion, he said. The first drug under this agreement is expected to be launched in late 2005 and revenues from this deal are the first for Glenmark from its operations in the US. Glenmark has an existing marketing tie-up with Philadelphia-based Lannett Co for the US market. More recently, Glenmark had also tied-up with Canada's Apotex Inc and two other US generic drug companies, to supply them with bulk drugs or the active ingredients that go into a drug. Glenmark and K.V. Pharmaceuticals will also collaborate to secure US regulatory approval for its products, the company said in its statement.
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