RPT-UPDATE 1-Glenmark Pharma in licensing deal with Sanofi, shares soar
(Repeats to more subscribers without changes to text)
* Outlicenses Novel Monoclonal Antibody GBR500 to Sanofi
* Expected to receive $613 million, in addition to royalties
* Shares open up 10 pct, extend gains to nearly 20 pct (Recasts, adds details, shares)
MUMBAI, May 16 (Reuters) - Indian drugmaker Glenmark Pharmaceuticals said on Monday its unit has signed a licensing agreement with France's Sanofi to develop and commercialise a novel monoclonal antibody, sending its shares up nearly 20 percent.
Under the terms of the agreement, Glenmark is expected to receive as much as $613 million, in addition to double-digit royalties on sales of products commercialised under the license.
The molecule, GBR500, is used for the treatment of Crohn's disease and other inflammatory conditions.
Glenmark has completed the first phase dosing of GBR500 in the US and plans are in place to initiate clinical proof of concept studies in Crohn's Disease.
"There continues to be a strong medical need for safer and more efficacious products for the treatment of inflammatory diseases," said Elias Zerhouni, president of global research and development at Sanofi.
The Indian company will receive an upfront payment of $50 million, half of which will be paid upon closing of transaction and the remainder is contingent upon Sanofi's positive assessment of certain data to be provided by Glenmark, it said.
The transaction is expected to close in the coming month, it added.
Under the deal, Sanofi will have exclusive marketing rights for North America, Europe, Japan, Argentina, China and Uruguay, it added.
The two companies would co-market in Russia, Brazil, Australia and New Zealand and Glenmark will retain exclusive marketing rights in India and other countries in the rest of the world.
At 9.40 a.m., shares of the firm were up 7.9 percent at 295.85 rupees in a weak Mumbai market. (Reporting by Swati Pandey and Kaustubh Kulkarni; Editing by Sunil Nair)
- Islamic State executes soldiers, takes hostages at Syria base: social media
- Breakthrough hopes dented as Ukraine accuses Russia of new incursion |
- Gaza truce holding but Israel's Netanyahu under fire at home |
- WHO shuts Sierra Leone lab after worker infected with Ebola
- 'Men in green' raise suspicions of east Ukrainian villagers