Glenmark regains global R&D rights for diabetic drug

Glenmark has received back the global R&D rights for diabetic drug 8200 from Merck which has, after a reorganization, decided to get out of the diabetes space.

In an exclusive interview with CNBC-TV18, Glenn Saldanha, MD & CEO, Glenmark Pharama said they are now in discussion with two or three different companies to license it out again. According to him, given the amount of work that’s gone on, on the drug, the new upfront payments should obviously be in excess of the USD 31 million they had got from Merck as an upfront.

Excerprts of CNBC-TV18’s exclusive interview with Glenn Saldanha:

Q: We understand that this is a type 2 diabetes drug. a) What are the chances of this going the whole road and b) Have you paid certain amount to acquire the R&D rights?

A: I think there is a slight misunderstanding, 8200 which was licensed out to Merck KGaA, Merck has gone through this major reorganization and they’ve decided to move out of the diabetes space. We had licensed it out to Merck and we’ve received the rights back for 8200. We are now in discussions with several other partners to out license it again for the second time.

Q: How soon will you that and how much upfront payments, or total payments, might you be looking at if you out license it?

A: So far, the first time when we did the deal with Merck, we got USD 31 million from them as an upfront pavement, which we get to keep. We also get some more money from them for ongoing studies.

We have discussions ongoing with two or three different companies, which we hope to conclude in the next 6-12 months. The upfront payments obviously, given the amount of work that’s gone on, should be in excess of what we have got from Merck as an upfront.