Glenmark gets Rs 60-cr from Forest labs for Asthma drugs

Mumbai: Glenmark Pharmaceuticals Ltd has received a milestone payment of $15 million (about Rs 60 crore) from Forest Labs, for the Mumbai-based drug company’s prospective asthma drug Oglemilast (GRC 3886).

Glenmark had out-licensed the prospective drug molecule to its North American partner, Forest, for further development of GRC 3886 in 2004.

The milestone payment follows a favourable response from the regulatory US Food and Drug Administration (FDA) allowing Forest to initiate an additional Phase II study in COPD for Oglemilast, a note from Glenmark said. Phase II studies involve testing the drug on a larger population of people with the illness for which the medicine is targeted.

Glenmark and Forest Labs are working together to initiate additional studies for further longer-term development of Oglemilast, including a Phase II study in asthma.

The $190-million deal was executed through Glenmark’s wholly-owned Swiss subsidiary Glenmark Pharmaceuticals SA (GSA). As part of the original deal with Forest was to develop, register and commercialise GRC 3886 for the North American market, while Glenmark retained commercialisation rights for the rest of the world.

Forest made Glenmark an upfront payment upon initiation of the agreement, and will make milestone payments if the development and commercialisation of the product is successfully completed in the North American market; the total value of these payments being $190 million.

Additionally, after commercial launch, Glenmark will earn a royalty from Forest on net sales of the product, and, in addition, will supply the active pharmaceutical ingredient for sale by Forest. This s followed by a similar collaboration agreement with Teijin Pharma Ltd for the territory of Japan in April 2005.

Glenmark shares closed marginally up at Rs 495.80 on Wednesday.