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DewDiligence

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Re: None

Tuesday, 04/26/2005 9:12:20 AM

Tuesday, April 26, 2005 9:12:20 AM

Post# of 253566
This asthma program has better odds than the anti-IL-9 program from GENR and MEDI (IMHO):

http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh14672_2005-04-26_10-52-38_bom...

>>
Glenmark signs asthma drug deal with Japanese firm

BOMBAY, April 26 (Reuters) - India's Glenmark Pharmaceuticals Ltd. (GLEN.BO: Quote, Profile, Research) said on Tuesday it had licensed an asthma treatment molecule to Teijin Pharma Ltd. for development and marketing in Japan, in a deal worth up to $53 million.

This follows a tie-up with U.S. rival Forest Labs Inc. ( FRX ) for development and marketing of the drug, which aims to treat chronic obstructive pulmonary disorder (COPD), in North America. The deal with Forest, worth up to $190 million, is the largest licensing agreement struck by any Indian drug maker.

Glenmark Managing Director Glenn Saldanha told reporters the company aimed to sell the rights for the drug, known as GRC 3886, in the European market as well. He was hopeful of finding a partner before the end of the financial year ended March 2006.

The deals with Forest and Teijin Pharma, a unit of Japanese textile maker Teijin Ltd. (3401.T: Quote, Profile, Research) , were both struck by Glenmark's Swiss subsidiary.

Saldanha said North America had 45 percent of the world market for asthma and COPD drugs, while Japan had 10 percent.

Glenmark's drug, one of the PDE4-inhibitor-classed drugs that calm inflammation, was promising because it had fewer side effects, he said.

"The drug is phenomenally clean on side effects, it is non-emetic and is devoid of cardiovascular side effects," he said.

Teijin will make an upfront payment and milestone payment when Phase I trials begin in Japan. If the drug is successful, Glenmark will get royalties and supply bulk ingredients for it.

"We ... are extremely excited by the molecule's potential to offer another important advance for the treatment of asthma and COPD," Shigeo Ohyagi, president of Teijin Pharma, which is strong on respiratory diseases, said in a statement.

Separately, Glenmark said Forest had paid another tranche of $10 million to the Indian firm for completion of Phase I clinical trials. This follows an upfront payment of $10 million already made after the deal was struck in September.

Saldanha expected Glenmark to receive $30 million more from Forest before the drug enters Phase II trials by the end of 2005.

Glenmark shares gave up early gains in a weak market, where drug shares were tempered by poor quarterly results as domestic sales were hit by tax concerns. The shares rose as much as 5.3 percent soon after the deal was announced, but ended 2.9 percent lower at 287.7 rupees. Glenmark reports results on Wednesday.

Saldanha said the company would use the money from the licensing deals for mergers & acqusitions (M&A).

"We don't need significantly more capital for research, the bulk will go into M&A activity in the generic space," he said.

The company entered into an agreement with Shasun Chemicals & Drugs Ltd. (SHAS.BO: Quote, Profile, Research) in March to jointly develop and sell generic drugs in the United States. ($1 = 43.7 Indian rupees)
<<

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