Sanofi - Aventis seals Licensing Deal with Glenmark for $613m - Deal Analysis from GlobalData by GlobalData

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									                  Sanofi - Aventis seals Licensing Deal with Glenmark for
                           $613m - Deal Analysis from GlobalData
        Reference Code: GDHC0005M&A                                                                                                           Publication Date: May 2011


        1         Table of Contents                                                                   2       Summary
        1 Table of Contents.................................................................1         May 16, 2011 witnessed the commencement of the licensing
        2 Summary .............................................................................1      deal between Glenmark Pharmaceuticals S.A (GPSA), a wholly
        3 Sanofi - Aventis seals Licensing Deal with Glenmark for                                     owned subsidiary of Glenmark Pharmaceuticals Limited India,
          $613m ..................................................................................1   and Sanofi-Aventis, headquartered in Paris. This license
         3.1 Deal Rationale ...............................................................1          agreement, the first ever deal involving a novel biologic
         3.2 About Crohn’s Disease ..................................................2
                                                                                                      developed from in India, entails the development and
         3.3 About GBR500 ..............................................................2
         3.4 Glenmark and Sanofi-Aventis: The First Deal ...............2                             commercialization of Glenmark’s novel monoclonal antibody
         3.5 Companies Overview ....................................................2                 (anti-inflammatory drug) in the first phase of clinical
           3.5.1     Sanofi-Aventis ......................................................2           development, codenamed GBR500, to treat intestinal condition,
         3.6 Glenmark .......................................................................3        Crohn’s Disease, and other auto-immune disorders. This
           3.6.1     Overview ..............................................................3         licensing agreement with Sanofi-Aventis is the second licensing
           3.6.2     Chief Executive Officer (CEO)..............................3
                                                                                                      deal, first novel biologics deal and the sixth first-world deal for
           3.6.3     Revenue (2010) ...................................................3
           3.6.4     Employee strength ...............................................3               the Indian firm.
           3.6.5     Geographic Presence ..........................................3
        4 Appendix ..............................................................................3    3       Sanofi - Aventis seals Licensing Deal
         4.1 Methodology ..................................................................3                  with Glenmark for $613m
           4.1.1     Coverage..............................................................3
           4.1.2     Secondary Research ............................................3                 The deal is valued at $613m and includes the upfront payment
           4.1.3     Primary Research ................................................3               of $50m which Glenmark will receive. Of this payment, $25
           4.1.4     Expert Panel Validation ........................................4                million will be paid on the closure of the transaction, followed by
         4.2 Contact Us ....................................................................4         a second tranche of $25m, which is contingent upon Sanofi-
         4.3 Disclaimer .....................................................................4        Aventis's positive assessment of certain data to be provided by
                                                                                                      Glenmark. When the drug is launched in the market it is
                                                                                                      estimated to have a market value of $2–3 billion.
                                                                                                      Furthermore, Glenmark is eligible to receive tiered double-digit
                                                                                                      royalties on sales of products commercialized under the
                                                                                                      license. Sanofi-Aventis will have exclusive marketing rights for
                                                                                                      North America, Europe, Japan, Argentina, Chile and Uruguay.
                                                                                                      Sanofi-Aventis and Glenmark will co-market in Russia, Brazil,
                                                                                                      Australia and New Zealand, and Glenmark will retain exclusive
                                                                                                      marketing rights in India and other countries in the rest of the
                                                                                                      world. In addition, Glenmark could receive royalty and
                                                                                                      commercial milestone payments amounting to a total of $613m
                                                                                                      making it the largest out-licensing deal by any Indian
                                                                                                      pharmaceuticals company.

                                                                                                      3.1     Deal Rationale
                                                                                                      Biologics are predicted to be the next blockbusters in the drug
                                                    
								
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