Glenmark Pharmaceuticals & Merck KGaA announce Collaboration Agreement on DPPIV Inhibitor for Type 2 Diabetes

Glenmark Pharmaceuticals Ltd has announced that Merck KGaA and Glenmark Pharmaceuticals S.A (Switzerland), a wholly owned subsidiary of the Company, have entered into an agreement for Glenmark’s DPPIV inhibitor GRC 8200, a treatment for type 2 diabetes in Phase II of clinical development. The transaction is expected to close this year upon approval of the exclusive license to GRC 8200 by the US antitrust agencies under the HSR act.

Under the agreement, Merck KGaA will develop, register and commercialize GRC 8200 for markets in North America, Europe and Japan, white Glenmark will retain commercialization rights for India. The partners will share commercialization rights for other markets in the remainder of the world. Merck KGaA will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future.

The value of all payments to Glenmark could total up to EUR 190 million, including a EUR 25 million up-front payment and various milestone payments upon successful development and launch of mono-therapy and combination products based on GRC 8200. Upon commercial launch, Glenmark will supply the active ingredient to Merck and will receive royalties on net sales of the product.

Merck’s Glucophage® (metformin) has been on the market for nearly 50 years and still remains the global gold standard for the oral treatment of type 2 diabetes.

According to Glenn Saldanha, MD and CEO of the Company, "This deal is in line with our strategy to collaborate with global partners for our new chemical entities program. The DPPIV inhibitor market is expected to be highly competitive and we are delighted to partner with Merck, a global market leader in oral diabetes medications. Within the scientific community it is widely expected that DPPIV inhibitors will be used in combination with other anti-diabetics. Existing and pipeline drugs from Merck KGaA are excellent candidates for the development of combinations and this would prove a significant advantage for both partners."

Source : Equity Bulls

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