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Our Bureau

Product likely to be launched after 2010

Mumbai , Oct. 17

In its second major out-licensing deal in two years, Glenmark Pharmaceuticals Ltd (GPL) has entered into an agreement with Germany's Merck KgaA for its prospective diabetes molecule GRC 8200. The first molecule out-licensed by Mumbai-based Glenmark was a prospective drug for asthma, GRC 3886.

Glenmark will get a total of € 190 million, including an up-front payment of € 25 million, besides milestone payments upon successful development and launch of mono-therapy and combination products based on GRC 8200, the company said. The product is expected to be launched after 2010.

Market rights

The transaction is expected to close this year, pending approval from the US antitrust agencies. Merck KGaA will develop, register and commercialise GRC 8200 for markets in North America, Europe and Japan.

Glenmark will retain commercialisation rights for India, besides having co-commercialisation rights in the other markets, said Mr Glenn Saldanha, Managing Director and Chief Executive Officer of GPL.

More candidates

Glenmark has three more phase I candidates, two in pain inflammation and one in anti-obesity, he said.

One of the molecules, he said would enter clinical trials by the end of the year.

The end-game would be to find the right partner, he said, since the company does not have capabilities to take the molecule through to commercialisation.

Merck KGaA will bear the cost of ongoing studies on GRC 8200 and will be responsible for planning, managing and sponsoring all development activities in the future. Analysts expect the category of drugs to peak sales of an estimated 9 billion euros.

Trials

The deal has been done through Glenmark Pharmaceuticals SA (Switzerland), a wholly owned subsidiary of GPL. The product is in its second phase of clinical development, where the molecule is tested on humans with the illness. The trials were done in South Africa and India.

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