Merck KGaA licenses Glenmark's DPP-4 drug

Darmstadt, Germany-based Merck KGaA has licensed Indian drugmaker Glenmark Pharmaceuticals' GRC 8200. The novel dipeptidyl peptidase-4 inhibitor is a potential treatment for type 2 diabetes and is currently in Phase II clinical development. The transaction is expected to close this year upon approval of the exclusive license to GRC 8200 by US antitrust agencies.

Under the terms of the deal, Merck will develop, register and commercialize GRC 8200 for markets in North America, Europe and Japan, while Glenmark will retain commercialization rights for India. The partners will share commercialization rights for markets in the remainder of the world. Merck will bear the cost of all ongoing studies and will be responsible for planning, managing and sponsoring all development activities in the future.

The value of all payments to Glenmark could total up to 190.0 million euros ($249.8 million), including a 25.0 million-euro upfront payment and various milestones upon successful development and launch of monotherapy and combination products based on GRC 8200. Upon commercial launch, Glenmark will supply the active ingredient to Merck and will receive royalties on sales of the product. Banc of America has predicted that the entire DPP-4 class of antidiabetics, which includes Merck & Co's Januvia (sitagliptin) and Novartis' Galvus (vildagliptin), will achieve peak sales of $3.0 billion by 2010.