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New Generic entity to be listed by Q1FY 2008-09
MUMBAI, India | November 7, 2007 | Glenmark Pharmaceuticals Limited, one of India’s leading research-led, integrated pharmaceutical companies, today announced its plans to reorganize its businesses into Specialty and Generics. The new Generic entity called Glenmark Generics Limited will be a wholly owned subsidiary of Glenmark Pharmaceuticals Limited and will be listed on the Indian bourses by Q1 FY 2008-09.
Mr. Terrance Coughlin, currently President API and US Generics, will take over the role of the CEO while Mr. Glenn Saldanha will function as the Chairman of Glenmark Generics Limited.
Speaking on this development, Mr. Glenn Saldanha, CEO & MD, Glenmark Pharmaceuticals Ltd., said, “both our Speciality and Generics business have now grown immensely, posing a growth challenge of managing two large, but diverse businesses. The sheer size of the business now has its own set of management challenges. To address these challenges, strengthen our focus in R&D and accelerate our growth in the generics and API business, we are happy to announce a plan to reorganize our businesses by moving the generics and API businesses into a wholly owned subsidiary Glenmark Generics Ltd. The new company will handle the development, manufacture and marketing of generic formulation and API businesses.”
The objective of the reorganization of the business is to build end to end integration, scale and capabilities in pursuing a generic business, on the GGL side, and to build end to end Global capabilities similar to a Big Pharma Company on the Specialty side. The new company will handle the development, manufacture and marketing of generic formulation and API businesses. Glenmark Pharmaceuticals Ltd will continue to directly manage the novel R&D and branded formulation businesses of the Glenmark group including India, Brazil, Rest of Latin America (excluding Argentina), Russia/CIS, Africa and Asia.
The Generics business will inherit Glenmark’s Goa plant for formulations, the three API plants in India, our sales units in the USA and UK and the Argentina oncology operations. In addition, a group from R&D focused on API and Formulation development will also move to the generics company.
The branded business will remain in Glenmark Pharmaceuticals and retain all remaining assets, branded generic sales groups in India and overseas and all remaining R&D operations related to NCEs, Biologics and formulation development for brands.
The 2015 target for GGL is to become a global, integrated generic & API leader, with more than 170 generics on the US market, more than 70 generic dossiers for EU markets, build presence in Japan, South Africa & other generic markets, be a preferred supplier of APIs and build front ends in Japan and key EU markets in addition to North America.
Speaking of the objectives of the planned IPO for GGL, Mr. Terrance Coughlin, currently President - US Operations, and Head API Sales, Glenmark Pharmaceuticals Ltd. Said, “We would not be diluting more than 30% of Glenmark Generics Limited (GGL) through a fresh issue of shares. We will use capital in GGL to acquire/build specialty US front end with late stage pipeline and/or marketing, further expand GGL’s generic foot print globally through acquisitions, expand capacity for generics and focus on expansion into other niche segments”.
After the reorganization Glenmark Pharmaceuticals Ltd. will play two roles. The first will be investor in the generics business through its subsidiary. The second will be running the specialty, original drug development and branded generics businesses of the Glenmark group. “In effect, the biggest benefit of the reorganization is the advantage the organization will get from giving both the generic and the brand businesses the separate focus they deserve, managing the scale that both businesses have now achieved” Mr. Saldanha added.
About Glenmark
Glenmark Pharmaceuticals Ltd. is a research-led, global, fully integrated pharmaceutical company headquartered in Mumbai, India. The Company is a leader in India in the discovery of new molecules. Glenmark has 11 lead molecules at various stages of development in NCE & NBE research. Three of the leads are in Phase II whereas eight other leads are into the pre-clinical and discovery stages in the broad areas of inflammation, metabolic disorders and oncology.
The Company has generic formulation and API business interests in over 80 countries across the world including the highly regulated markets of USA and Europe. The formulation business spans several product segments such as Dermatology, Internal Medicine, Paediatrics, Gynaecology, ENT, Cardiology, Diabetes and Oncology.
Glenmark’s first Asthma/COPD molecule, Oglemilast [GRC 3886], was licensed out to Forest Laboratories and Teijin Pharma Limited for the North American and Japanese markets, respectively, in two landmark deals. The Company’s second lead GRC 8200, a DPP-IV inhibitor for Type II Diabetes was out-licensed to Merck KGaA, Germany for the North American, European and Japanese markets. A third molecule targeting pain, GRC 6211, undergoing Phase II clinical trials in Europe, has recently been out-licensed to Eli Lilly & company.
[www.glenmarkpharma.com]
SOURCE: Glenmark Pharmaceuticals Limited
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