Glenmark receives euro 25 million from Merck

Mumbai, December 18, 2006: Glenmark Pharmaceuticals S.A. [GPSA], the wholly owned Swiss subsidiary of Glenmark Pharmaceuticals Ltd. [India] [Glenmark] has, after the anti-trust clearance in the US, received EUR 25 million from Merck KGaA, Darmstadt, Germany in Q3 FY2007. This constitutes the upfront payment under the recently concluded collaboration agreement for Glenmark's DPP-IV inhibitor GRC 8200 between the two parties.

GRC 8200 is a novel, oral DPP-IV inhibitor and Glenmark's lead molecule for Type II Diabetes. It is currently in Phase II clinical trials in South Africa and India. Under the agreement, Merck KGaA will develop, register and commercialise GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialisation rights for India. The partners will share commercialisation rights for other markets in the remainder of the world.

Merck KGaA will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future. The value of all payments to Glenmark could total up to EUR 190 million, including the EUR 25 million up-front payment [just received] and various milestone payments upon successful development and launch of mono-therapy and combination products based on GRC 8200. Upon commercial launch, Glenmark will supply the active ingredient to Merck and will receive royalties on net sales of the product.

About Glenmark: Glenmark Pharmaceuticals Ltd. is a research-led, global, fully integrated pharmaceutical company headquartered in Mumbai, India. The Company is a leader in India in the discovery of new molecules and is focused in the areas of inflammation [Asthma/COPD, etc] and metabolic disorders [Diabetes, Obesity, etc].

Glenmark's first Asthma/COPD molecule, Oglemilast [GRC 3886], was licensed out to Forest Laboratories and Teijin Pharma Limited for the North American and Japanese markets, respectively, in two landmark deals. Oglemilast is presently undergoing Phase II clinical trials in the US. The Company's second lead GRC 8200, a DPP-IV inhibitor for Type II Diabetes, is in Phase II clinical trials in South Africa and India. It was recently out-licensed to Merck KGaA, Germany for the North American, European and Japanese markets. A third molecule targeting pain, GRC 6211, recently entered Phase I clinical trials in Europe. Glenmark has three other programmes across obesity, inflammation and pain management at the pre-clinical stages; two of which will enter the clinics in FY 2007.

The Company also has generic and branded generic formulation and API business interests spanning several product segments in over 80 countries across the world including the highly regulated markets of USA and Europe.