Exubera competitors at end of this article...
UPDATE: Aradigm Rockets On Restructured Deal With Novo Nordisk
12:59 EDT Wednesday, July 05, 2006
BOSTON (Dow Jones) -- Aradigm Corp. shares rallied Wenesday as the developer of drug-delivery systems negotiated a restructured deal with Danish drugmaker Novo Nordisk for their inhaled insulin product candidate.
The shares traded up 24% at $1.73 in recent action, after hitting an earlier high of $1.90.
In a release, Hayward, Calif.-based Aradigm (ARDMD) said it will receive a cash infusion of $27.5 million from Novo Nordisk (NVO) , a leading maker of diabetes-care products.
In particular, Novo Nordisk will pay Aradigm $12 million to assume ownership of a certain group of patents related to the inhaled insulin product, which is in Phase III clinical testing. Aradigm, in turn, will receive royalties on any future inhaled insulin products sold by Novo Nordisk.
Aradigm, in turn, agreed to a 1% reduction in its average royalty rate on AERx iDMS, its lead inhaled insulin product, in exchange for $8 million. This transaction will results in Aradigm having an average royalty rate of 5% percent or higher five years after the product's launch.
In addition, Novo Nordisk has paid Aradigm $7.5 million in the form of a 5%, eight-year note. The note is secured by future royalty payments.
"Together with this cash infusion, Aradigm now has more than $35 million in cash which will advance our AERx respiratory-focused programs including our self-initiated liposomal ciprofloxacin program for the treatment of cystic fibrosis-related infections," said Bryan Lawlis, Aradigm's chief executive, in a statement.
"It is our intent to balance both partnered and self-initiated AERx opportunities with the goal of full ownership of products in the future," Lawlis added.
Earlier this year, the Food and Drug Administration approved the U.S.'s first inhaled insulin product, Exubera. Co-developed by Pfizer (PFE) and Nektar Therapeutics (NKTR) , it will be launched mid-July.
Diabetes-drug heavyweight Eli Lilly & Co. (LLY) and partner Alkermes Inc. ( ALKS) are also working on an inhaled insulin product, as is Mannkind Corp. ( MNKD) |
