Glenmark arm pays Rs 140 cr royalty to Paul Capital

Glenmark Pharmaceuticals today said its generic arm had completed royalty payment to Paul Capital Partners' Royalty Fund for developing dermatological products for the US market with the final tranche of over Rs 140 crore ($28.8 million).

The company's subsidiary, Glenmark Generics, has made a "payment of $28.8 million in exercise of its purchase option election with respect to its royalty agreement with Paul Capital Partners' Royalty Fund", Glenmark Pharma said in a filing to the Bombay Stock Exchange (BSE).

Glenmark had entered into a $27 million deal with Paul Capital Partners in 2005 to finance the development of its 16 dermatological products for the US market.

In return of the investment, Paul Capital received royalties from Glenmark Generics.

"With the exercise of the purchase option election, Glenmark Generics has no further obligation to pay royalties to Paul Capital," the company said.

Shares of Glenmark Pharmaceuticals today closed at Rs 321.80 on the BSE, up 1.42% from its previous close.