Glenmark soars on likely deal of $150 mn
Market participants expect payout to Glenmark from such a deal would include upfront and milestone payments and royalties on sales.
By Noemie Bisserbe, TNN |
MUMBAI: The shares of Glenmark Pharmaceuticals soared on Wednesday on market talk that the Indian company is close to signing an outlicencing deal worth $100-150 million for its experimental drug Oglemilast for the European market, analysts said. The stock closed 10.6% higher at Rs 574.95 on BSE, after rising more than 17% during the day.
When contacted, Glenmark’s managing director and chief executive, Glenn Saldanha, declined to comment.
Market participants expect payout to Glenmark from such a deal would include upfront and milestone payments and royalties on sales. Oglemilast could command a potential market worth $700-800 million in Europe alone.
The drug, developed to treat asthma and chronic obstructive pulmonary disorder (COPD) and currently in phase II of clinical trials, has already been licensed out for Japanese and US markets, to Forest Laboratories and Teijin Pharma, respectively.
However, talks with potential partners for Europe had come to a halt, as the US Food and Drug Administration (FDA) asked Forest Labs to conduct additional pre-clinical studies before resuming clinical trials on humans. Last October, the regulator finally gave its nod to Forest Labs to conduct further phase II trials.
The Indian company, however, is yet to receive the second milestone payment from Forest Labs, that was expected as the molecule entered phase II of clinical trials. Glenmark Pharma had received an upfront payment of $10 million, as well as a first milestone payment of $10 million in 2005. If the drug makes it to the market, payment from Forest Labs could add up to $190 million.
When contacted, Glenmark’s managing director and chief executive, Glenn Saldanha, declined to comment.
Market participants expect payout to Glenmark from such a deal would include upfront and milestone payments and royalties on sales. Oglemilast could command a potential market worth $700-800 million in Europe alone.
The drug, developed to treat asthma and chronic obstructive pulmonary disorder (COPD) and currently in phase II of clinical trials, has already been licensed out for Japanese and US markets, to Forest Laboratories and Teijin Pharma, respectively.
However, talks with potential partners for Europe had come to a halt, as the US Food and Drug Administration (FDA) asked Forest Labs to conduct additional pre-clinical studies before resuming clinical trials on humans. Last October, the regulator finally gave its nod to Forest Labs to conduct further phase II trials.
The Indian company, however, is yet to receive the second milestone payment from Forest Labs, that was expected as the molecule entered phase II of clinical trials. Glenmark Pharma had received an upfront payment of $10 million, as well as a first milestone payment of $10 million in 2005. If the drug makes it to the market, payment from Forest Labs could add up to $190 million.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
