Glenmark Pharmaceuticals, today announced that its Board of Directors has given an in-principle approval to spin off the innovation business into a new company in the US. Setting up of the new company will provide an enhanced focus to the innovation business and help accelerate the pipeline towards commercialization.
The new innovation company will be a wholly-owned subsidiary of Glenmark and will be based in the
US. It will have an independent board and a new Chief Executive Officer. The other members of the
management and the team remain unchanged.
“Glenmark has built strong capabilities in the area of innovation in terms of world class infrastructure,
talent pool, and technology. We currently have a pipeline of 8 NMEs most of which are first-in-class
globally. The cutting edge work that the innovation team has delivered over the years has resulted in
numerous achievements most notably among them being the fact that we have out-licensed our novel
molecules to big pharmaceutical organizations consistently. 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,” said Glenn Saldanha, chairman and managing director of
Glenmark Pharmaceuticals.
According to the plan, all innovative molecules in the pipeline, including preclinical assets and
technology; the R&D centres in Switzerland, R&D centre at Paramus in the US and R&D centre at Navi
Mumbai, India related to the innovation business, and the biologics manufacturing facility in
Switzerland along with all employees associated with innovative R&D will be part of the new company.
The new company will have over 400 employees as part of this business. The specialty and generics
business will continue to be housed in the parent company and will not be part of this new company.
The transfer of the assets and employees to the new innovation company is expected to be completed
in the next 6 to 9 months.
