In its second licensing deal with France's Sanofi in 12 months, Glenmark has granted the multinational drug-maker a licence to develop and commercialise a biological compound targeting Crohn's disease and other inflammatory conditions. Glenmark is expected to receive upfront payment of $613 million in addition to double-digit royalties on sales. The money will be used to part-service the company's debt of Rs 1,900 crore.
As part of the agreement, Glenmark will receive an upfront payment of $50 million on out-licensing its prospective molecule GBR 500 — a novel monoclonal antibody. However, half this amount will be paid on closing the transaction. The transaction is slated to close in June. Under the deal Sanofi will have exclusive marketing rights for North America, Europe, Japan, Argentina, China and Uruguay. The projected timeline for the drug to hit the market is 2017, by when most of the payment is expected to come through. In May last year, Glenmark had out-licensed its prospective pain molecule to Sanofi.
| Company Name | CMP |
|---|---|
| Sun Pharma Inds. | 1847.30 |
| Dr. Reddys Lab | 1293.25 |
| Cipla | 1347.70 |
| Zydus Lifesciences | 938.90 |
| Lupin | 2377.90 |
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