Glenmark Pharmaceuticals has received EUR 25 million (Rs 150 crore) from Merck KGaA, Darmstadt, Germany in Q3 FY2007. This constitutes the upfront payment under the recently concluded collaboration agreement for Glenmark's DPP-IV inhibitor GRC 8200 between the two parties. The company received this payment through its wholly owned US based subsidiary - Glenmark Pharmaceuticals S.A. (GPSA).
Glenmark's lead molecule for type II Diabetes-GRC 8200 is a novel, oral DPP-IV inhibitor. It is currently in phase II clinical trials in South Africa and India. Under the agreement, Merck KGaA will develop, register and commercialise GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialisation rights for India.
The partners will share commercialisation rights for other markets in the remainder of the world. Merck KGaA will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future. The value of all payments to Glenmark could total up to EUR 190 million, including the EUR 25 million upfront payment (just received) 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.