Glenmark

Mumbai, Oct 17 (UNI) Glenmark Pharmaceuticals (Switzerland) and Merck, the wholly owned subsidiary of Glenmark Pharmaceuticals have entered into an agreement for Glenmarks DPPIV inhibitor GRC 8200, a treatment for type 2 diabetes in Phase II of clinical development.

Announcing this, Mr Glen Saldanha, Managing Director&CEO of Glenmark Pharmaceuticals told newsmen here today that the value of all payments to Glenmark could total up to EUR 190 million, including a EUR 25 million up-front payment 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, said he.

This deal is in line with its strategy to collaborate with global partners for its new chemical entities program. The company expects that DPPIV inhibitors will be used in combination with other anti-diabetics.

Under the agreement, Merck will develop, register and commercialize GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialization rights for India. The partners will share commercialization rights for other markets in the remainder of the world. Merck will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future.

The transaction is expected to close this year upon approval of the exclusive license to GRC 8200 by the US antitrust agencies under the HSR Act.

According to Mr Saldanha,''This deal is in line with our strategy to collaborate with global partners for our new chemical entities program. The DPPIV inhibitor market is expected to be highly competitive and we are delighted to partner with Merck, a global market leader in oral diabetes medications.'' Within the scientific community, he continued, it is widely expected that DPPIV inhibitors will be used in combination with other anti-diabetics. Existing and pipeline drugs from Merck KGaA are excellent candidates for the development of combinations and this would prove a significant advantage for both partners.

UNI SN PM SKB1948