Merck pays Glenmark Rs148 crore upfront for diabetes drug

19 December 2006

Chennai: Glenmark Pharmaceuticals SA (GPSA), the wholly owned Swiss subsidiary of Glenmark Pharmaceuticals Ltd. (India) (Glenmark) has, after the anti-trust clearance in the US, received €25 million (approximately Rs148 crore) towards a diabetes drug under development from Merck KGaA, Darmstadt, Germany, in the third quarter of FY2007.

Merck KgaA, formerly known as E Merck, is unrelated to the US-based drug maker of the same name.

The payment constitutes the upfront amount under the recently concluded collaboration agreement for Glenmark''s DPP-IV inhibitor GRC 8200, an oral drug used in the management of diabetes, between the two drug firms.

GRC 8200 is a novel, oral DPP-IV inhibitor and Glenmark's lead molecule for Type II diabetes. It is currently in Phase II clinical trials in South Africa and India.

Under the agreement, Merck KGaA will develop, register and commercialise GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialisation rights for India.

The partners will share commercialisation rights for other markets in the remainder of the world. Merck KGaA will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future.