Glenmark Pharmaceuticals Europe (Glenmark) today announced that it has entered into a strategic development & licensing agreement with Celon Pharma to develop and market a generic version of GlaxoSmithKline's Seretide Accuhaler product.

Celon Pharma is an integrated pharmaceutical company which conducts advanced research and manufactures modern drugs.

The company said, 'Glenmark obtains semi-exclusive marketing & distribution rights for the product across 15 European countries, including Great Britain and Germany upon commercialization.'

'Celon to receive upfront as well as milestone payments on various stages of the product's development from Glenmark; including royalties on sales,' it added. 

The distribution agreement is concluded for a period of 10 years, with an option of a two-year extension.

Glenn Saldanha, chairman & MD, Glenmark Pharmaceuticals said,  ''The deal reinforces Glenmark's growing capabilities in the respiratory segment and is a significant step forward towards building a strong respiratory franchise in Europe. We are pleased to collaborate with Celon given their established track record with this inhaler product in Europe.''

Shares of the company gained Rs 16.3, or 1.6%, to trade at Rs 1,036.00. The total volume of shares traded was 42,141 at the BSE (2.00 p.m., Friday).