Glenmark sells new drug licence to Sanofi for $50 mn
17 May 2011
Mumbai's Glenmark Pharmaceuticals reached an agreement with Sanofi under which it will licence its experimental drug GBR 500 to the French pharmaceuticals major for development and commercialisation.
A biological drug for the treatment of Crohn's Disease or chronically inflamed bowels and other inflammatory conditions like multiple sclerosis, the drug's estimated revenue potential is $613 million (Rs2,734 crore).
Glenmark will receive $50 million (Rs223 crore) or 8 per cent of the potential deal value as an upfront payment in the next three months.
Glenmark chairman Glenn Saldanha told a press conference in Mumbai on Monday that the company also stands to earn double-digit royalties on sales. This is the first licensing deal by an Indian company in the biological drug space.
The drug, a novel monoclonal antibody, is still in early human trials, but has successfully completed phase I trials. Monoclonal antibodies, part of a person's immune system, are said to identify diseased cells accurately, so that patients get safe and effective treatments with fewer side effects.
Glenmark has sold marketing rights to Sanofi in North America, Europe, Japan, Argentina, Chile and Uruguay. While it has retained co-marketing rights in Russia, Brazil, Australia and New Zealand, in India, it has exclusive rights.
Glenmark said it will receive the $50 million in two tranches of $25 million each - one upon closing of the transaction, likely in June, and the other after Sanofi completes data assessment, details of which Glenmark did not share, citing confidentiality reasons.
