Glenmark’s gets payments from Forest for Oglemilast

Glenmark Pharmaceuticals Ltd. [Glenmark], announced today that its wholly owned Swiss subsidiary Glenmark Pharmaceuticals SA (GSA), has received a milestone of USD 15 Million from Forest Labs, which is Glenmark’s North American partner for Oglemilast (GRC 3886). This follows a favourable response from USFDA, allowing Forest to initiate an additional Phase II study in COPD for Oglemilast. Glenmark and Forest Labs are working together closely to initiate additional studies for further longer term development of Oglemilast, including a Phase II study in Asthma.

GSA had entered into a collaborative agreement with Forest in September 2004, wherein Forest would develop, register and commercialize GRC 3886 for the North American market, while Glenmark will retain commercialization rights for the rest of the world. Forest paid Glenmark an up-front payment upon initiation of the agreement, and will pay other milestones if the development and commercialization of the product is successfully completed in the North American market; the total value of these payments could be $190 million. Additionally, after commercial launch, Glenmark will earn a royalty from Forest on net sales of the product, and, in addition, will supply all API for sale by Forest. This was followed by a similar collaboration agreement with Teijin Pharma Limited for the territory of Japan in April 2005.

Sourced From: Glenmark Pharmaceuticals Limited