Glenmark gets $15 mln milestone fee from Forest Labs

MUMBAI (Reuters) - Glenmark Pharmaceuticals Ltd said on Wednesday its Swiss unit received $15 million in milestone fees from U.S.-based Forest Laboratories for the Indian firm's experimental Oglemilast molecule.

The payment followed the U.S. Food and Drug Administration's approval to start additional phase II, or mid-stage, clinical studies on the molecule for a host of lung disorders.

Under Glenmark's 2004 collaborative deal with Forest, the latter had the right to develop and sell the asthma drug in North America for an upfront payment and additional fees for each developmental milestone that could total $190 million in all.

Mumbai-based Glenmark has so far received $35 million from Forest, including $10 million in upfront fees. It has a similar deal with Teijin Pharma Ltd for Japan, with the Indian firm retaining rights for the rest of the world.

For 2007/08, Glenmark has forecast $75 million in milestone revenue.

Shares in the company extended gains on the news to touch 505 rupees before easing to 499 rupees, up 0.7 percent in a Mumbai market that was down 2.8 percent.