India-based Glenmark Pharmaceuticals is set to spin-off its innovation business into a new company in the US to increase focus on innovation and advance its pipeline towards commercialisation.
Glenmark intends to transition all pipeline assets and technology under the innovation business into the new company. The molecules are in various development stages across immunology, oncology and pain management areas.
The new company will also include Glenmark’s research and development (R&D) centres in Paramus, US; Switzerland; and Mumbai, India. A Swiss biologics manufacturing facility will also be transferred.
In addition, all workforce associated with innovative R&D will be part of the new entity, which is estimated to have a total of more than 400 employees.
Transfer of the assets and employees is expected to be completed over the coming six to nine months.
Glenmark Pharmaceuticals chairman and managing director Glenn Saldanha said: “With the pipeline at an advanced stage, we believe it’s the right time for the innovation business to be an independent entity and charter its own journey towards becoming a leading biotech organization globally.
“This change will provide enhanced focus to the business, a better operating ecosystem and additional opportunities to unlock value for the parent company in future.”
Currently, the company’s pipeline consists of a total of eight new chemical entities (NCEs) and new biological entities (NBEs), five of which are in clinical development and three in pre-clinical stage.
Of the products, three immuno-oncology bispecific antibodies were developed using the company’s BEAT platform, which will be leveraged by the new firm to further enhance the assets.
To date, Glenmark has received approximately $250m via eight out-licensing deals of the molecules to multiple pharmaceutical companies, including Merck, Eli Lilly, Sanofi and Forest Laboratories.
The new entity will operate as a wholly-owned subsidiary of Glenmark with a standalone board and new CEO, while other management and team members will continue.
Glenmark decided to retain its specialty and generics business.