Glenmark to enter Europe with Rs 100 crore buy

MUMBAI: Leading mid-sized pharma company Glenmark Pharmaceuticals would soon enter the European market by acquiring a front-end pharmaceutical company for about Rs 100 crore. Glenmark MD and CEO Glenn Saldanha told ET that the target company is in Central Europe and the deal is likely to be through before the end of March. It has a strong marketing force and some approved products, Mr Saldanha said without disclosing the company’s name.

Glenmark now has just an office in UK for business development. Merchant bankers said there are many small and medium-sized family-owned pharma firms in Europe that have a low profitability and are up for sale. They would suit the needs of Indian companies planning to enter the EU market, they said.

Glenmark has presence in over 80 countries, including the US, in the business of finished products and key ingredients called APIs. It is strong in therapeutic segments such as dermatology, internal medicine, paediatrics, gynaecology, ENT, diabetes and oncology.

The company is also in talks with a few MNCs to license out the Europe rights for its experimental asthma drug oglemilast. US-based Forest Laboratories Inc has the North American market rights and Teijin Pharma has the Japanese market rights for the drug.

It is now undergoing phase-two clinical trials in the US. Glenmark, which is soon expected to get $ 30 million from Forest Labs as a reward for the drug showing promise in the development programme, will retain the rights for the rest of the market.

The company is scouting for partners to develop another experimental drug to treat neuropathic and arthritic pain. The drug is now undergoing first phase of clinical trials in Europe. The company would out-license it before it enters the next phase, Mr Saldanha said. Glenmark has another three experimental drugs for obesity, rheumatoid arthritis and pain management at pre-clinical stage, which are set to enter the clinics later this year. The company intends to license all of them out to MNC partners by the end of next year.