Glenmark gets $15 mn from Forest Labs

Glenmark  Pharmaceuticals today announced that its wholly-owned Swiss subsidiary Glenmark Pharmaceuticals SA (GSA) has received a milestone payment of $15 million from Forest Labs, which is Glenmark's North American partner for Oglemilast (GRC 3886).

This  follows a favourable response from USFDA allowing Forest to initiate an additional Phase II study for Oglemilast. Glenmark and Forest Labs are working together to initiate additional studies for further longer term development of oglemilast - including a Phase-II study in asthma.

GSA had entered into a collaborative agreement with Forest in September 2004 wherein Forest would develop, register and commercialise GRC 3886 for the North American market, while Glenmark will retain commercialisation rights for the rest of the world.

Forest paid Glenmark an up-front payment upon initiation of the agreement, and will pay other milestones if the development and commercialisation of the product is successfully completed in the North American market. The total value of  these payments could be $190 million. Additionally, after commercial launch, Glenmark will earn royalty from Forest on net sales of the product, and will supply all API to Forest.

This was  followed by a similar agreement with Teijin Pharma for Japan in April 2005.