Merck KGaA in-licenses diabetes drug

Merck KGaA, the German pharmaceutical company, has in-licensed GRC 8200, a new treatment for type two diabetes developed by Glenmark, an Indian company.

The drug, in phase II clinical development, is a DPPIV inhibitor, which inhibits the DPP-IV enzyme, allowing increased insulin production in the process. Glenmark claims the class of drug is expected to make a “significant contribution” to diabetes care.

Under the terms of the agreement, Merck KGaA will pay an upfront fee to Glenmark totalling 25 million euros (16.75 million pounds), while various milestone payments dependent on successful development and launch of products could bring this figure to 190 million euros.

Glenn Saldanha, managing director and chief executive officer of Glenmark, said that development of the GRC 8000 could also see it being included as part of a monotherapy.

“Existing and pipeline drugs from Merck KGaA are excellent candidates for the development of combinations and this would prove a significant advantage for both partners,” he remarked.

Elmar Schnee, Merck KGaA’s executive board member for its pharmaceutical division, added: “Merck is a world leader in the fight against diabetes and this agreement shows that we remain committed to the battle.”

Merck KGaA has marketed Glucophage “for nearly 50 years”. The metformin treatment is still regarded as a standard therapy for type II diabetes.

Metformin was discovered by Jean Sterne, a French pharmacologist, during the mid-50s.