Glenmark Pharmaceuticals Inc, has signed a $27 million royalty deal with international healthcare investment fund Paul Capital Partners' Royalty Fund to finance the development of 16 dermatological products by the pharma major for the US market.
In return, Paul royalty will receive undisclosed royalties on net sales, following US FDA approval, and launch of each product.
GPI is a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd (Glenmark), the research-led global pharmaceutical company.
"The products in the portfolio currently have a total US market revenue of about USD one billion. Under the agreement, Glenmark will be responsible for pre-clinical development, will manage the clinical trials and manufacture the products," Managing Director and CEO Glenmark Pharmaceuticals Glen Saldanha told reporters in Mumbai on Monday.
GPI will be responsible for filing the abbreviated newdrug applications and, upon approval, marketing the products in the US.
"Paul Royalty will finance product development through milestone payments to GPI for over next two years. In return, Paul Royalty will receive a royalty on net sales for these products, with the percentage varying by product and performance," Saldanha said.
"Sharing clinical and operational risks inherent in the portfolio and reducing impact of generic R&D expenditure are among key reasons we entered into this deal," he said.
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