Glenmark Pharma signs $325 mn deal with Sanofi

In a deal that could give Mumbai-based Glenmark Pharmaceuticals potential revenues of $325 million (around Rs 1,676 crore) over an unspecified period,the companys subsidiary Glenmark Pharmaceuticals SA entered into an outlicensing agreement with French drug major Sanofi-Aventis. Under the agreement,Glenmark has licensed out a new molecule to treat chronic pain to Sanofi for development and commercialisation. The expected revenues for Glenmark include an upfront payment of $20 million (Rs 90 crore) from Sanofi,and $305 million as development,regulatory and commercial milestone payments.

Glenmark Pharma shares were up 3.63% on the Bombay Stock Exchange to close at Rs 279.65.

However,drug licensing deals in the pharma space are fraught with risks. This is the fourth drug molecule that Glenmark has outlicensed to an MNC over the last few years. All the earlier molecules Glenmark outlicensed to Forest Laboratories,Eli Lilly and Merck have been discontinued. In February 2008,Merck Serono,a division of Merck KGaA,terminated its agreement with Glenmark to develop Melogliptin (GRC 8200) to treat type-2 diabetes,in Phase-II of clinical development. In August 2009,Forest Laboratories shelved Glenmarks first prospective drug molecule Oglemilast,saying Phase IIb dose range studies were not successful.