Mid-sized Glenmark Pharmaceuticals marked a key step into the big league of drug companies on Monday with a $613-million (Rs 2,750 crore) revenue deal under which French major Sanofi will develop and market its sclerosis-fighting molecule under licence.
Shares of the company founded by brothers Glen and Mark Saldanha closed 12% up on the stock exchanges after the deal under which the molecule, code-named GBR500, aimed at treating Crohn's disease and other inflammatory conditions such as multiple sclerosis, will fetch $50 million in upfront revenue subject to data verification.
The rest of the revenue will be spread out over five years.
Glenmark will also get sales royalties if the drug clears all clinical trials and regulatory hurdles.
"It's the first novel biologic out-licensing deal coming from any Indian company," said chief executive Glenn Saldannha.
Biologics a class of drugs that are made from living cells and are more difficult to copy than chemical pills.
Glenmark has completed the phase-I testing of the molecule in the US and global phase-II trials are expected to begin soon.
Glenmark had bought the antibody - GBR500 from Canadian company Chromos in 2007.
{{/usCountry}}Glenmark had bought the antibody - GBR500 from Canadian company Chromos in 2007.
{{/usCountry}}French cooking for Indian recipe