Lilly and Glenmark sign license agreement

Following the agreement, Lilly will acquire the rights to a portfolio of transient receptor potential vanilloid sub-family 1 antagonist molecules, including a clinical compound, GRC 6211 that is currently in early clinical Phase II development as a potential next-generation treatment for various pain conditions, including osteoarthritic pain.

Under the terms of the agreement, Glenmark will receive an upfront fee of $45 million and could receive up to an additional $215 million in potential development and sales milestones for the initial indication, as well as royalties on sales if GRC 6211 is successfully commercialized.

If other indications are successfully developed, Glenmark would be entitled to additional milestones up to $90 million. Lilly will have marketing rights for North America, Europe and Japan, while Glenmark will retain the marketing rights in all other countries. Furthermore, Glenmark will have the right to co-promote GRC 6211 in the US.

The agreement became effective in the fourth quarter of 2007. At closing, Lilly would expect a charge to earnings for acquired in-process research and development.