Glenmark Pharmaceuticals' wholly owned subsidiary Glenmark Pharmaceuticals (GPI), USA has signed a royalty deal with international healthcare investment fund Paul Capital Partners Royalty.According to an official release issued to the BSE today, as per the terms of the arrangement, Paul Royalty will invest up to $ 27 million for the development of 16 Glenmark dermatological products for the US market.In return Paul Royalty will receive undisclosed royalties on net sales following US Food and Drug Administration approval, and launch of each product. The products in the portfolio currently have a total US market revenue of about $ 1 billion. This dermatological portfolio ranges from the easier to more complex product development, near and medium term revenue opportunities, and a mix of Para I-III and Para IV filings. Clinical trials for two of the products have already been initiated and ANDA filings will commence from the end of 2006 and continue over the next two years. All 16 products are expected to be launched over the next five years with the first product launch occurring in 2007."This deal marks many firsts including first time an Indian company is entering the US market with an entire portfolio of dermatology products, a unique deal structure and the first risk-sharing financing deal of its kind. Sharing clinical and operational risks inherent in the portfolio and reducing the impact of generic R&D expenditure on the P&L are among the key reasons we have entered into this deal. We have chosen Paul Royalty to partner with us in this risk-sharing deal for their deep experience in healthcare investment and understanding of the process evolved. Along with our strength and experience in dermatology formulations, we believe that this partnership combine is well equipped to take on record on the challenge," Glenn Saldanha, managing director & CEO of the Glenmark, said. "Developing a dermatological range fits into the niche products strategy that Glenmark is pursuing and will give us an edge in the US generics space,"Terrance Coughlin, president of Glenmark Pharmaceuticals, USA, said.
