Sanofi-aventis and Glenmark partner

Sanofi-aventis (S-A) and Glenmark Pharmaceuticals have entered into a licensing agreement for the development and commercialisation of new chronic pain treatments.

Indian drug company, Glenmark, will receive $20m initially, and additional payments of as much as $325m linked to development, regulatory and sales milestones. French drug maker, S-A, may also pay royalties on sales of products commercialised under the agreement.

S-A will have exclusive marketing rights in North America, the EU and Japan subject to Glenmark's right to co-promote the products in the US and five Eastern European countries. S-A will also have co-marketing rights in 10 other countries including Brazil, Russia and China. Glenmark will retain exclusive rights in India and other countries.

On the day the news was announced, Glenmark advanced 3.6 per cent to 279.45 rupees at the close of trading – the stock's biggest gain since March 29, 2010.