The US subsidiary of Glenmark pharmaceuticals Ltd. (Glenmark) has signed a deal with Paul Capital Partners’ Royalty fund, worth $27-million to finance the development of its dermatological portfolio for the US market.

The legal advisors of Glenmark in the deal were, DSP Merrill Lynch & Greenberg Traurig LLP.

Glen Saldanha, the managing director & CEO of Glenmark has confirmed that the deal was the first risk-sharing financing deal of its kind.

Glenmark will be responsible for pre-clinical & clinical development, and the manufacture of products, as per the agreement, while its US subsidiary will be responsible for filling the abbreviated new drug applications (AWDAs) & making the products in the US.

Glenmark India will also supply active pharmaceutical ingredient (API) for some of the products.

Glenmark pharmaceuticals Inc. will be funded by Paul Capital through Milestone payments over the next two years.

Paul Capital, in return will receive a royalty on met sales for these products, with the percentage varying by product & performance.

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