Glenmark gets Rs 110 cr from Sanofi as final upfront payment

Glenmark Pharmaceuticals today said it has received Rs 110 crore from Sanofi, as second tranche of oulicensing fee for a deal with French drug major, taking the total upfront receipts to about Rs 220 crore.

In May, a Glenmark Pharmaceuticals SA, a wholly-owned subsidiary of Glenmark Pharma had outlicenced to Sanofi its monoclonal antibody, GBR 500, which is used for treatment of digestive disorders.

For Glenmark, the deal has a potential to generate revenue of as much as $613 million (around Rs 2,720 crore).

"With this payment, Glenmark has now received the entire upfront payment of $50 million from Sanofi pertaining to the GBR 500 deal," the company said in a filing to the Bombay Stock Exchange (BSE).

It had received the first upfront payment of $25 million in June after receiving regulatory approvals from the US authorities.

As per the agreement, Sanofi would have exclusive marketing rights for the GBR 500 products in North America, Europe, Japan, Argentina, Chile and Uruguay.

The products will be co-marketed by the Indian and the French company in Russia, Brazil, Australia and New Zealand.

On the other hand, Glenmark would retain exclusive marketing rights in India and the rest of the world.

Glenmark has six different molecules under different stages of development, including GBR 401, GBR 600, GBR 900. It acquired GBR 500 and GBR 600 from a Canadian pharmaceutical company at the early stages of its development.

Glenmark shares were trading today at Rs 308.30 on the BSE in late afternoon trade, down 0.64% from previous close.