Glenmark Pharmaceuticals has announced that its board will meet on January 6 to consider issue of bonus shares to its shareholders. |
Year 2004 has been successful for the company in terms of deals. Its $190 million in-licensing deal with Forest Laboratories, a $2billion US-based pharma major to develop PDE4 inhibitor GRC 3886""a compound developed by Glenmark, was among the biggest in the pharmaceuticals industry. |
Forest will pay Glenmark an upfront payment and other milestones if the development and commercialisation of the product is successfully completed in the North American market. The drug is in development for chronic obstructive pulmonary disorder (COPD) and asthma. |
The company had in the recent past announced that it would be raising $80 million (around Rs 360 crore) through foreign currency convertible bonds. |
According to the company it was an enabling resolution valid for a year and the idea behind the fund raising programme was to be prepared for any merger and acquisition opportunity that may arise in the near future. |
According to analysts, the company has sharpened its focus on the research and development activities and is expected to step up investment in basic research. |
Currently, it employs over 100 scientists focusing on asthma, diabetes and obesity. Glenmark has also seen an inflow of funds from its $80 million licensing deal for eight abbreviated new drug applications to the US-based K V Pharmaceutical Co. It is in the process of getting royalty and upfront payment from K V Pharmaceutical. |
The generic products licenced to K V Pharmaceutical have annual branded sales of over $2.5 billion in the current market. |
The company's key area focus includes dermatology, gynaecology, respiratory, gastrointestinals and lifestyle diseases such as diabetes and cardiology. |
The drug maker's domestic business contributes in excess of 80 per cent to its total revenue of Rs 381 crore. The company has been exporting active pharmaceutical ingredients to unregulated markets and is now looking at regulated markets in a big way. |