Glenmark close to diabetic deals with global firms

Glenmark Pharmaceuticals would soon close its second discovery molecule outlicensing deal with a multinational drug company. The lead molecule - GRC 8200, a promising drug for treatment of type 2 diabetes - is currently undergoing phase I clinical trials in the UK.

Glenmark is currently in the final stages of discussions with the multinational company, which has a significant presence in the US and European markets.

The licensing deal would involve further clinical development, registration and marketing of the molecule in regulated markets. The world market for the drug in this diabetes segment is learnt to be around $3.5 billion.

The Rs 612-crore (Rs 6.12 billion) domestic pharma major is also likely to finalise another deal with a UK-based pharma company to license out Glenmark's anti-asthma molecule - 3886 - for the European market.

Glenmak had licensed this molecule, which is the first lead compound from its R&D, to the US-based Forex Lab for a total valuation of $190 million.

For the Japanese market, Teijin Pharma held the licence and the valuation of the deal that happened last year was $53 million.Glenmark managing director and CEO, Glenn Saldanha told Business Standard  that both these outlicensing deals would be finalised by the end of this year.

"The global anti-diabetes market size is estimated to be $12 billion and the main markets are the US, Europe and Japan. The new anti-diabetes drug is expected to gain 35 per cent of the market in the segment soon after the launch in 2010. So the valuation is ought to be substantial depending on the specific markets where the rights have been agreed up on," said Saldanha.

An industry analyst said if the licensing deal comes through by December this year, milestone payments to be received by the company this financial year would be in the range of Rs 150-200 crore (Rs 1.5-2 billion).

"We will hit the $200 million turnover target the by the end of the financial year. This will include the milestone payments for this molecule," said Saldanha.In the meanwhile, Glenmark has signed two partnership agreements with US-based companies, Interpharm Inc and Konec Inc for marketing their generic products Naproxen and Nitroglycerin in the US.

Glenmark has started marketing these products through its front-end in the US market and has already locked-in and is supplying contracts amounting to a market share in excess of 15 per cent of the US market.

The company also entered into an exclusive licensing agreement with InvaGen Inc for marketing its anti-hypertensive agent Fosinopril Sodium oral tablets in the US. So far, Glenmark had filed 7 ANDAs and it plans to file 13 more ANDAs this financial year.

The company has received the USFDA's approval for its Goa facility that manufactures formulations for the international regulated markets.