Pharma company Glenmark has won a legal battle against Napo Pharma over rights to sell HIV-associated diarrhoea drug Crofelemer in 140 countries. In its verdict, international arbitrator, the International Centre for Dispute Resolution (ICDR), ruled in favour of Glenmark.
According to the verdict, Glenmark has exclusive rights to commercialise and distribute Crofelemer, through relief agencies, in the 140 countries that comprise the Glenmark territory. The potential peak sales of the drug are pegged at $80 million (around Rs 440 crore) for the 140 markets.
On Thursday, shares of Glenmark closed at Rs 412.15, up 1.72 per cent on the BSE.
Glenmark had sought arbitration in the US last December after its partner — Napo Pharma — terminated an agreement under which Glenmark held the exclusive rights to distribute Crofelemer in 140 countries including India. In a three-party agreement, Napo Pharmaceuticals which discovered the molecule had licensed it to Salix Pharmaceuticals and Glenmark for developing and marketing the drug in certain territories. Napo terminated the agreement in last November citing breach of agreement. Salix was to sell the drug in regulated markets such as North America, Japan and Europe.
ICDR also found that Napo breached the agreement by disclosing confidential information about manufacturing Crofelemer to another drugmaker Aptuit Laurus, Glenmark said in a statement.
“This ruling will allow Glenmark to further its commitment to working with relief agencies to distribute Crofelemer to affected populations,” said Glenn Saldanha, chairman & MD, Glenmark Pharmaceuticals.
There are two primary indications for Crofelemer– HIV Related Diarrhea and Adult Acute Diarrhea. The potential peak sales of drugs for Adult Acute Diarrhea including Cholera is yet to be estimated, said a Glenmark statement.
