Transition Therapeutics licenses I.N.T. to Novo Nordisk
Transition Therapeutics Inc (TSX:TTH)
Shares Issued 107,022,735
Last Close 8/20/2004 $0.95
Monday August 23 2004 - News Release
Dr. Tony Cruz reports
TRANSITION THERAPEUTICS LICENSES DIABETES REGENERATIVE THERAPY TO NOVO NORDISK A/S
Transition Therapeutics Inc. has signed a licensing agreement with Novo Nordisk A/S to develop the Islet Neogenesis Therapy (I.N.T.) for the treatment of diabetes. The I.N.T. technology represents a novel approach to regenerate insulin producing cells in the body and is currently under development for the treatment of both type I and type II insulin dependent diabetics. The agreement includes an equity investment of $6-million, upfront payments and development milestones potentially totalling up to $48-million (U.S.), commercial milestones, and royalties. Transition had previously announced in Stockwatch on June 24, 2004, Novo Nordisk's decision to exercise its option to license Transition's I.N.T. technology.
"The signing of this agreement with Novo Nordisk represents a key milestone for Transition and provides significant validation of our work to date," said Dr. Tony Cruz, chairman and chief executive officer of Transition. "This relationship will allow us to advance key I.N.T. programs while working closely with a world leader in diabetes care."
The I.N.T. technology platform, covered by a broad patent portfolio, is based on the discovery that a short course of injections of naturally occurring peptides can regenerate insulin-producing cells in the body. Two lead islet neogenesis products are currently under development: E1-I.N.T., a combination of Transition's epidermal growth factor analogue (E1) and gastrin analogue (G1), has completed two phase I clinical trials and is advancing toward phase II clinical trials; and GLP1-I.N.T., a combination of one of the leading diabetes drug candidates, glucagon-like-peptide-1 (GLP-1), with G1, is currently in preclinical development.
"The I.N.T. technology is supporting our efforts of developing a cure for diabetes. Although this project is at an early stage, we are excited about the results obtained so far and look forward to exploring the potential of this technology," said Dr. Peter Kurtzhals, senior vice-president for discovery at Novo Nordisk.
Under the terms of the licensing agreement, Novo Nordisk will:
receive exclusive worldwide rights to Transition's I.N.T. technology except for I.N.T. for transplantation;
make upfront and milestone payments to Transition which, assuming all development milestones are achieved, will total $48-million (U.S.);
make an equity investment in Transition of $6-million;
pay commercial milestone payments and royalty payments on future net sales to Transition; and
assume all costs for the development for the licensed I.N.T. technology.
The licensing agreement also provides for Transition to continue advancing programs that are already in clinical development, specifically E1-I.N.T. Transition intends to move E1-I.N.T. into phase II clinical trials, and will finance development until Novo Nordisk takes over the program, at its option, at which point Novo Nordisk will retroactively reimburse Transition for costs incurred.
I.N.T. for transplantation
As mentioned above, under the terms of the licensing agreement, Transition will now retain the rights to ex vivo I.N.T. applications, specifically I.N.T. for transplantation. Using human islet preparations, Transition has demonstrated that I.N.T. may have the ability to increase the number and longevity of islet cells prior to transplantation, thus allowing for a greater number of transplantations in diabetic patients by better using the limited number of donor pancreases available.
Equity investment
Under the terms of the final licensing agreement, Novo Nordisk has agreed to purchase five million common shares of Transition at a price of $1.20 per share. Closing of this $6-million investment is expected to occur on Aug. 27, 2004, and is subject to filing of the usual documentation with the Toronto Stock Exchange. The shares issued to Novo Nordisk will be subject to a four-month hold period.
About Novo Nordisk
Novo Nordisk is a health care company and a world leader in diabetes care. The company has the broadest diabetes product portfolio in the industry, including the most advanced products within the area of insulin delivery systems. In addition, Novo Nordisk has a leading position within areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. For more information, visit novonordisk.com.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
© 2004 Canjex Publishing Ltd. |
