The Hindu Business Line : Glenmark ends drug deal with Merck

The deal came unstuck after Merck Serono announced its decision to re-focus its portfolio and its intention not to invest further into diabetes research and development.

Our Bureau

Mumbai, Feb. 1 The global rights on Glenmark’s prospective diabetes drug Melogliptin (GRC 8200) will return to it, the company said, after announcing the termination of its out-licensing deal with Merck Serono.

Glenmark had formally inked an outlicensing agreement with Merck KgaA on GRC 8200 in 2006, for further development of the drug. And Merck had made an upfront payment of €25 million to Glenmark on signing the €190-million deal.

The deal, however, came unstuck after Merck Serono announced its decision to re-focus its portfolio and its intention not to invest further into diabetes research and development.

Under the terms of the recent settlement, Merck Serono will be responsible for successful transfer of all activities at no cost to Glenmark.

Apart from payments by Merck Serono to Glenmark for completion of some ongoing activities, no payments or refunds would be due from either party to the other for the termination of the agreement, a note from Glenmark said.

Further, the company said, it will continue to run the on-going clinical and non-clinical development of GRC 8200 and expects the top-line results from Phase IIB studies to be available towards the end of the financial year 2009.

In a statement, Mr Glenn Saldanha, Glenmark’s Managing Director and Chief Executive Officer, said, “It is unfortunate to end our relationship with Merck Serono for GRC 8200 since they have contributed a lot of expertise in the development during the last year. However, the data package so far is promising and we are confident of finding a co-development partner to take the molecule further during the course of the calendar year 2008.”

Glenmark shares were down over two per cent on the BSE, at Rs 477.75 on Friday.

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