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Glenmark signs $ 80 m deal with US company
By siliconindia staff writer
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Thursday, 15 January 2004, 20:30 IST
MUMBAI: Glenmark Pharmaceuticals said on Wednesday it will licence eight abbreviated new drug applications to US-based K V Pharmaceutical Co in a deal worth more than $80 million.
Talking to reporters here, Glenn Saldanha, managing director and CEO of Glenmark, said the company will get royalty and upfront payment from K V Pharmaceutical, which the company said will have some impact on its 2003-04 earnings.
The upfront payment will be significant and may accrue to the company within 3-4 months, Saldanha said declining to reveal numbers.
Royalties from the deal will be spread over a decade or more, he said. We will have a steady flow of revenue from this deal from the next financial year onwards, Saldanha added.
The generic products licenced to K V Pharmaceu-tical have annual branded sales of over $2.5 billion in the current market.
The licencing agreement with K V Pharmaceutical was executed by Glenmark Pharmaceuticals Inc, a wholly-owned subsidiary of Glenmark.
Under the agreement, Glenmark will initially develop and licence to K.V. Pharmaceutical eight generic products for regulatory approval and marketing in North American markets.