Glenmark settlement with Merck

Glenmark Pharmaceuticals Ltd (GPL) has announced that the Company’s wholly owned subsidiary Glenmark Pharmaceuticals SA, Switzerland has reached a mutual amicable settlement with Merck Serono (a division of Merck KGaA) for termination of agreement on GRC 8200.

In this regard the Company has issued the following Press Release:

"Glenmark Pharmaceuticals S.A. (Switzerland), a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd (GPL) and Merck Serono, a division of Merck KGaA, have reached a mutually amicable settlement to terminate their on-going agreement on GRC 8200. Under these terms, Glenmark would get the global rights back from Merck Serono for Glenmark's DPPIV inhibitor Melogliptin, GRC 8200, a treatment for Type 2 diabetes in Phase II of clinical development.

This follows Merck Serono's recently announced decision to re-focus its portfolio and its intention not to invest further into diabetes research and development. Under the terms of this settlement, Merck Serono will be responsible for successful transfer of all activities at no cost to Glenmark. Apart from payments by Merck Serono to Glenmark for completion of some on-going activities, no payments or refunds would be due from either party to the other the termination of the agreement.

Glenmark will continue to run the on-going clinical and non-clinical development of GRC
8200 and expects the top-line results from Phase IIB studies to be available towards the end of FY09.

According to Mr. Glenn Saldanha, MD and CEO, GPL, "It is unfortunate to end our relationship with Merck Serono for GRC 8200 since they have contributed a lot of expertise in the development during the last year. However, the data package so far is very promising and we are confident of finding a co-development partner to take the molecule further during the course of the calendar year 2008."