India's Glenmark Pharmaceuticals has agreed to sell development and commercialisation rights of their promising new painkiller to France's Sanofi-Aventis SA.
Glenmark will receive an upfront payment of $20m for the molecule known as GRC 15300 and will also be eligible for milestone payments that could total $325m.
GRC 15300 is currently in the first phase of human trials as a treatment for various pain conditions, including diabetic neuropathic pain and osteoarthritic pain.
Glenmark will also be eligible to receive royalties in double-digit percentages of potential sales after the product launch, which is expected in the next five to six years.
Sanofi-Aventis will have exclusive marketing rights for North America, the European Union and Japan, subject to Glenmark's right to co-promote the products in the US and five Eastern European countries.
Sanofi-Aventis will also have co-marketing rights in ten other countries, including Brazil, Russia and China, whereas Glenmark will retain exclusive rights in India and other countries in the rest of the world.