Glenmark in licensing pact with Sanofi-Aventis

Glenmark in licensing pact with Sanofi-Aventis

Mumbai: Dugmaker Glenmark Pharmaceuticals Ltd said on Monday it has signed a licensing agreement with France’s Sanofi-Aventis for development and commercialisation of novel agents to treat chronic pain.

Under the terms of the agreement, Glenmark will receive an upfront payment of $20 million, and licensing fees could come to $325 million, it said in a statement.

Shares of Glenmark jumped more than 11% during early trades on Monday.

“In addition to licensing fees, we expect to receive double-digit royalties on sales of products commercialised under the license," Glenmark chief executive Glen Saldhana told CNBC-TV18 television channel.

The novel agents to be developed under this deal include vanilloid receptor (TRPV3) antagonist molecules, the company said in statement.

The GRC-15300, one of the molecules being developed, is currently in phase-I of clinical development, it added.

“It’s a very positive deal. The project is in the first phase... If implemented, it would generate the expected revenue in next five to six years," a pharma analyst told Reuters over the telephone.

Under the agreement, Sanofi-Aventis will have exclusive marketing rights for these novel agents in North America, European Union and Japan subject to Glenmark’s right to co-promote the products in the US and five East European countries, the company said.

Sanofi-Aventis will also have co-marketing rights in 10 other countries including Brazil, Russia and China.

Glenmark will retain exclusive rights in India and other countries of the rest of the world, it added.

At 10:07 a.m., shares of Glenmark Pharmaceuticals were trading at Rs285.7 , up 5.87% in a Mumbai market that was down 0.51%.