Glenmark Pharma, Sanofi ink licencing deal

MUMBAI, May 16 (PTI): Glenmark Pharmaceuticals SA, a wholly-owned subsidiary of Glenmark Prarmaceuticals Limited, today said it has outlicenced its novel monoclonal antibody, GBR 500, to French drug-maker Sanofi for as much as $613 million. "We have entered into an agreement with Sanofi to grant the latter the license for developing and commercialisation of GBR 500, a novel monoclonal antibody for the treatment of Crohn's Disease and other inflammatory conditions," Glenmark Pharmaceuticals Managing Director and CEO Glenn Saldanha told reporters here. This is the second deal the company has entered with Sanofi. The transaction is expected to close next month, he said. Under the agreement, Glenmark will receive an upfront payment of $50 million, which will be used to repay debt, he said. The net debt of the company an of March 31 stood at Rs 19.0 billion. "The total of these payments could reach $613 million. In addition, Glenmark is eligible to receive tiered double-digit royalties on sales of products commercialised under the licence," he said, adding that the bulk of the payment will flow by 2017. In addition, Glenmark could receive potential success-based development, regulatory and commercial milestone payments, he said.