Forest Labs and Glenmark collaborate; Takeda and Amylin cancel obesity accord

Indian drugmaker Glenmark Pharmaceuticals has entered into an agreement with Forest Laboratories (NYSE: FRX) on a collaboration for the development of novel mPGES-1 inhibitors to treat chronic inflammatory conditions, including pain.

Glenmark shares closed 4% higher at 518 rupees following the company signing a deal on Monday, and the stock hit a 52-week high of 527 rupees earlier in the day in a dull trading day ahead of Christmas.

Glenmark has identified clinical candidates and is currently conducting preclinical studies and other development activities required to support the initiation of first-in-human dosing. Under the terms of the deal, Forest will make a $6 million upfront payment to Glenmark and provide an additional $3 million to support the next phase of work. Forest will make other future payments in fiscal year 2014 to support the advancement of the ongoing mPGES-1 inhibitors program. Forest has an exclusive option to obtain license rights to the program on the completion of Phase I clinical trials.