India's Glenmark gets $15 mln from Salix for upgradation

Tue Jul 26, 2011 12:25am EDT

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MUMBAI, July 26 (Reuters) - Indian drugmaker Glenmark Pharmaceuticals said on Tuesday it has received $15 million from U.S.-based Salix Pharmaceuticals towards upgrading the manufacturing facility for HIV-associated diarrhea drug 'Crofelemer'.

Shares of Glenmark rose neary 7 percent on the announcement.

Salix had said on July 22, it had agreed to pay $21.6 million to Glenmark in five annual installment, but would pay advance $15 million of the amount on July 25 and the pay the remainder in annual installments.

Morrisville, North Carolina-based Salix, which holds the North American and European rights to the drug, said it amended the supply deal to meet an anticipated increase in demand for the drug.

Salix plans to submit a marketing application for Crofelemer in the United States by mid-2011.

Glenmark has exclusive marketing and distribution rights to this compound across 140 countries and is also the sole global supplier of active pharmaceutical ingredients except in China.

At 9:54 a.m., shares of Glenmark were trading at 344.45 rupees, up 4.68 percent in a flattish Mumbai market. (Reporting by Kaustubh Kulkarni; Editing by Harish Nambiar)

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