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Forest Laboratories, Inc.
Glenmark entered into a collaboration agreement with Forest Laboratories, Inc. [Forest] through its wholly-owned Swiss subsidiary, Glenmark Pharmaceuticals S.A., for its GRC 3886 molecule in September 2004. As part of this landmark agreement, which has the distinction of being amongst the biggest deals by an Indian company, Forest will be responsible for developing and commercialising the compound in North America; while Glenmark retains the rights for the rest of the world.
Glenmark stands to get potential milestone payments to the tune of USD 190 million by the time the molecule is commercialised. Additionally, following the commercial launch, Glenmark will earn mid-teens royalty from Forest on net sales of the product, and, in addition, will supply all API for sale by Forest.
As of April 2005, Glenmark has received USD 20 mn from Forest, half of which was paid upfront on signing the agreement and the balance upon the successful completion of Phase I in the fourth quarter of FY2005.
Teijin Pharma Limited
Glenmark inked a collaboration agreement with Teijin Pharma Limited [Teijin] for Japan for its GRC 3886 molecule in April 2005. As per this agreement, Teijin has the exclusive right to develop, register and commercialise the molecule for all potential indications for which the product might receive approval in the Japanese market.
Glenmark will receive a high up-front payment upon initiation of the agreement, and a further milestone on commencement of Phase I studies in Japan. Teijin will also pay Glenmark other milestones on crossing each successive stage in the development and commercialisation of the product for the Japanese market. The cumulative value of these upfront and milestone payments could be up to USD 53 million if all the milestones are completed. Additionally, after its commercial launch, Teijin will pay Glenmark annual sums that are marginally higher than the first quartile of net sales of the product in Japan, towards supply of the Active Pharmaceutical Ingredient [API] and royalties.
Subsequent to this tie-up, Glenmark retains rights to GRC 3886 for all markets excluding North America and Japan and is in discussions with potential collaboration partners for Europe as well.
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