Glenmark Pharmaceuticals' wholly owned Swiss subsidiary Glenmark Pharmaceuticals SA (GSA), has received a milestone payment of $15 million from Forest Labs, which is Glenmark's North American partner for Oglemilast (GRC 3886). This follows a favourable response from US FDA, allowing Forest to initiate an additional phase II study in COPD for Oglemilast.

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

GSA had entered into a collaborative agreement with Forest in September 2004, wherein Forest would develop, register and commercialise GRC 3886 for the North American market, while Glenmark will retain commercialisation rights for the rest of the world. Forest paid Glenmark an up-front payment upon initiation of the agreement, and will pay other milestones if the development and commercialisation of the product is successfully completed in the North American market; the total value of these payments could be $190 million.

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