Merck KGaA Licenses Glenmark Pharmaceuticals' DPPIV Inhibitor for Type 2 Diabetes

Filed in archive Corporate and Industrial News , Drugs, Vaccines and Therapeutics on October 17, 2006

Merck KGaA and Glenmark Pharmaceuticals S.A (Switzerland), a wholly owned subsidiary of India-based Glenmark Pharmaceuticals hve entered into a collaborative agreement to develop Glenmark's DPPIV inhibitor GRC 8200, a treatment for type 2 diabetes, currently under Phase II clinical development. DPPIV inhibitors are a class of drugs that work by inhibiting the activity of the DPP-IV enzyme, thereby stimulating the secretion of higher levels of insulin.

The value of all payments to Glenmark could total up to EUR 190 million, including a EUR 25 million up-front payment and various milestone payments upon successful development and launch of Mono-therapy and combination products based on GRC 8200. Upon commercial launch, Glenmark will supply the active ingredient to Merck and will receive royalties on net sales of the product.

Glenmark retains marketing rights for India while Merck KGaA gains North America, Europe and Japan markets.

Source: Merck