Mumbai: Drug maker Glenmark Pharmaceuticals Ltd said on 6 February it has received a milestone payment worth $15 million (Rs59 crore) from Forest Labs, its North American partner, for an anti-asthma drug Oglemilast.
Milestone payment refers to the partial payment made to a contractor when a part of a contract has been executed.
The payment was received by Glenmark’s wholly-owned Swiss subsidiary Glenmark Pharmaceuticals SA (GSA), pursuant to the favourable response from USFDA that allowed Forest Labs to initiate an additional phase-II study for Oglemilast.
GSA entered into a collaborative pact with Forest in September 2004, wherein the latter would develop and commercialize the drug for the North American market, while Glenmark would retain commercialisation rights for rest of the world.
Forest paid Glenmark an up-front payment upon initiation of the agreement and would pay other milestones if the development and commercialisation of the product is successfully completed in the North American market.
Total value of these payments could be $190 million, Glenmark said in a filing to the Bombay Stock Exchange.
Additionally, after commercial launch, Glenmark would earn a royalty from Forest Labs on net sales of the product.
Glenmark and Forest Labs are working together to initiate additional studies for further long-term development of oglemilast, including a phase-II study in asthma.
Shares of Glenmark were trading at Rs499, up 0.7% on the BSE in morning trade.