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Glenmark Pharma receives $15 million from Salix Pharma

26 Jul 2011 Evaluate

Glenmark Pharmaceuticals has received $15 million from Salix Pharmaceuticals, Inc, USA. This is as per an agreement for advance against commitment fee which is to cover Glenmark’s risks associated with upgrading its manufacturing facilities to meet Salix’s anticipated increased requirements in demand for Crofelemer.

Through an agreement between the two companies, Salix agreed to pay Glenmark a $21.6 million commitment fee in five equal annual installments, with the first annual installment in July 2012, in view of Glenmark’s investment in, and risks associated with, upgrading its manufacturing facilities to increase the production capacity of crofelemer. The commitment fee is in addition to the compound purchase price payable by Salix to Glenmark.

After remitting the advance of $15 million to Glenmaric, Salix will pay Glenmark the remaining $6.6 million of the commitment fee in five equal annual installments.

Glenmark Pharmaceuticals registered growth of 65.17% in its net profit after tax for the year ended March 31, 2011 at Rs 212.18 crore as compared to Rs 128.46 crore for the previous year. Its total income has increased by 19.43% at Rs 1185.02 crore for the year under review from Rs 992.22 crore in previous year.

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