Glenmark, Merck end deal for diabetes drug

Merck Serono, a division of global drug major Merck KGaA, has terminated its agreement with Glenmark Pharmaceuticals to develop Melogliptin (GRC 8200) to treat type-2 diabetes in Phase-II of clinical development.

According to a release issued by Glenmark today, Glenmark Pharmaceuticals SA (Switzerland), a wholly-owned subsidiary of the company, and Merck Serono have reached a mutually amicable settlement to terminate the on-going agreement following Merck's decision to re-focus its portfolio and not to invest further in diabetes research and development.

"It is unfortunate to end our relationship with Merck Serono for GRC 8200 since they have contributed a lot of expertise in the development during the last year. The data package so far is very promising and we are confident of finding a co-development partner to take the molecule further during the course of the calendar year 2008," said Glenn Saldanha, managing director and CEO, Glenmark.

Glenmark had outlicensed the drug to Merck KGaA in October 2006 to develop, register and commercialise GRC 8200 in North America, Europe and Japan, for a deal worth euro 190 million on commercialisation including an upfront fee of euro 25 million and milestone payments during the development stage.

Under the terms of the settlement, Merck Serono will transfer all activities at no cost to Glenmark. Apart from payments by Merck Serono to Glenmark for completion of some on-going activities, no payments or refunds would be due from either party to end the agreement, the release added.

Glenmark will continue to run the on-going clinical and non-clinical development of GRC 8200, and expects the top line results from Phase IIB studies to be available towards the end of FY09, the release said.

Glenmark's lead molecule GRC 3886 for asthma has been outlicensed to Forest Laboratories of the US and the drug is currently under Phase-II clinical development.