Glenmark - Glenmark Pharmaceuticals Limited has received USD 15 million from Salix Pharmaceuticals, Inc, USA
Glenmark Pharmaceuticals Ltd has informed BSE that the Company has received USD 15 million from Salix Pharmaceuticals, Inc, USA. This is as per an Agreement for Advance against Commitment fee which is to cover Glenmark's risks associated with upgrading its manufacturing facilities to meet Salix's anticipated increased requirements in demand for Crofelemer.
Through an agreement between the two companies, Salix agreed to pay Glenmark a $ 21.6 million commitment fee in five equal annual installments, with the first annual installment in July 2012, in view of Glenmark's investment in, and risks associated with, upgrading its manufacturing facilities to increase the production capacity of crofelemer. The commitment fee is in addition to the compound purchase price payable by Salix to Glenmark.
After remitting the advance of USD 15 million to Glenmaric, Salix will pay Glenmark the remaining $ 6.6 million of the conimitment fee in five equal annual installments.