Glenmark to spin off its innovation business into new company
Glenmark Pharmaceuticals is making a big strategic move. The company’s board of directors has given in-principle approval to spin off its innovation business into a new U.S. company that will focus on the therapeutic areas of immunology, oncology and pain management.
The new company, with no name yet announced, will provide an enhanced focus to the innovation business and help accelerate the pipeline towards commercialization, Glenmark said. It will be a wholly-owned subsidiary of Glenmark based in Paramus, N.J., and it will have an independent board and a new CEO. The other members of management and the team remain unchanged.
All innovative molecules in the pipeline, including preclinical assets and technology; the research and development centers in Switzerland, R&D center in Paramus, N.J., and R&D center 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 more than 400 employees. 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.
“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 eight new biological entities, most of which are first-in-class globally,” Glenmark chairman and managing director Glenn Saldanh said. “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.”
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