) and Glenmark Pharmaceuticals S.A, a wholly owned subsidiary of
Glenmark Pharmaceuticals Limited India, recently signed a
collaboration agreement. The companies will work on the
development of novel mPGES-1 inhibitors for the treatment of
chronic inflammatory conditions, including pain.
Potential candidates have already been identified by Glenmark.
Glenmark is conducting pre-clinical studies with these candidates
prior to the initiation of human studies.
Glenmark will receive an upfront payment of $6 million from
Forest Labs. Moreover, Forest Labs will pay $3 million to fund
the next phase of work. Additional payments will be made by
Forest Labs in fiscal 2014 to support the development program.
Once phase I development is completed, Forest Labs has an
exclusive option to acquire licensing rights to the program.
With this deal, Glenmark is gaining a strong commercialization
partner like Forest Labs. Meanwhile, the deal is in line with
Forest Labs' efforts to expand its pipeline. Forest Labs is
facing tough times with Lexapro losing patent protection. Over
the past few years, Forest Labs has been very active in signing
in-licensing and partnership deals with the intention of
expanding its pipeline. The company has licensing agreements with
several companies like Almirall SA,
) among others.
We currently have a Neutral recommendation on Forest Labs,
which carries a Zacks #3 Rank (Hold). Following the release of
second quarter results, Forest Labs once again cut its outlook
for fiscal 2013. More than Lexapro's genericization, the cut in
Namenda's guidance is disappointing as Namenda is currently the
main contributor to the company's top line. Moreover, the
performance of new products especially Teflaro, has been below
expectations. We note that Namenda will face generic competition
in early 2015 putting another $1+ billion at risk.
Both Ironwood Pharma and AstraZeneca are Zacks #2 Rank (Buy)
ASTRAZENECA PLC (AZN): Free Stock Analysis
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