Glenmark outlicences drug for $350 mn to Eli

Glenmark Pharmaceuticals has outlicensed its third new drug under development - GRC 6211 for pain management including osteoarthritis - to the drug major Eli Lilly for a potential deal size of about $350 million (approximately Rs 1378 crore).

Under the agreement, Glenmark has already received an upfront development fee of $ 45 million and could receive up to $215 million in development and sales milestones as well as sales royalties, till the commercialisation stage.

If the drug is found suitable for other indications, Glenmark will be entitled to additional milestones of $90 million. Lilly will have the marketing rights for North America, Europe and Japan. Glenmark will retain the marketing rights in other countries and will co-promote the drug with Eli Lilly in the United States.

"We are excited to partner with Eli Lilly. The global pain management market is worth $ 45 billion and we hope to commercialise the drug by 2011," said Glenn Saldanha, managing director, Glenmark.

Currently, Pfizer and Merck are the only other companies that have drugs under development for pain management in the same class of drugs of GRC 6211.

The global pain management market is valued about $ 45 billion. GRC 6211 is in the advanced second phase of clinical development in various parts of the world, which Eli Lilly will take forward to the commercialisation stage.

Glenmark, with a pipeline of about 11 molecules under development, is the first pharmaceutical company in India to outlicense three molecules.

Oglemilast (GRC 3886) - its lead molecule for asthma and lung related diseases is now in the Phase II advanced clinical trial stage with Forest Laboratories of the US and its second drug for diabetes was licensed to Merck .

"We have three other drugs entering into the clinical trial stage for rheumatoid arthritis and pain management, neuropathic pain and obesity. These three are likely to be in the clinical trial stage before the end of this financial year," added Glen.

Share prices of Glenmark shot up by 4.45 per cent today on the Bombay Stock Exchange (BSE) to Rs 474.20 from the Rs 454 at the close of trading yesterday.

Glenmark's share prices had increased by 6.15 per cent yesterday, mainly due to the announcement on US regulatory clearance to do further studies on its asthma molecule, Ogemilast.