DUBLIN, Ireland, Nov. 24, 2008 (GLOBE NEWSWIRE) -- Merrion Pharmaceuticals (IEX:MERR)and Novo Nordisk A/S (NYSE:NVO), a world leader in diabetes, have entered into a Development and License Agreement to develop and commercialise oral formulations of Novo Nordisk's proprietary Insulin analogues, using Merrion's proprietary GIPET(r) technology.
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Under the agreement Merrion will receive up to US$58 million for the first product developed under the agreement to reach the market based on achievement of certain development, regulatory and sales milestones as well as royalties on sales.
Under the agreement, Novo Nordisk is responsible and will pay for the development and commercialisation of the product candidates. Merrion is responsible for the development and manufacture of the initial clinical batches, with the work overseen by a joint development committee. Novo Nordisk and Merrion have collaborated since 2007 to test the utility of Merrion's GIPET(r) technology in preclinical models.
The total global insulin market is estimated to be worth around US$9bn worldwide (Ref: Datamonitor IMHC0209, August 2008) and this partnership between Merrion and Novo Nordisk can potentially deliver a major new oral product for people with diabetes.
The agreement also provides Novo Nordisk with the ability to develop additional oral formulations of Novo Nordisk insulin compounds using Merrion's proprietary absorption enhancing GIPET(r) technology. Merrion will be due additional milestone payments for any additional products developed under the agreement.
"This partnership with Novo Nordisk is important for Merrion in many ways" said John Lynch Chief Executive Officer of Merrion. "It brings Merrion's exciting technology for the oral administration of biopharmaceuticals together with Novo Nordisk, a world leader in the field of diabetes and a leader in peptide/protein based drugs. To date our collaboration with Novo Nordisk has been very positive and productive and today's agreement has the potential to offer significant new solutions to millions of people with diabetes worldwide, which provides a strong motivation for the Merrion team."
"We are delighted to continue working with Merrion, who have been an excellent partner, and their unique GIPET(r) technology. This programme is an important part of Novo Nordisk's strategy within diabetes research", said Peter Kurtzhals, Senior Vice President, Novo Nordisk's Diabetes Research Unit.
About Merrion:
Merrion Pharmaceuticals (www.merrionpharma.com) is a publicly listed specialty pharmaceutical company engaged in the development of oral forms (tablets/capsules) of drugs that have poor absorption and are generally given by injection. Merrion was established in 2004 to commercialise various technologies acquired from Elan Corporation, plc. Merrion's patented drug delivery technologies increase bioavailability, by improving absorption in the gastrointestinal tract, of drugs that are otherwise poorly absorbed. This can provide substantial benefit in patient convenience and safety, and might also provide enhanced drug efficacy. Merrion utilises its technology to develop new oral drugs in two ways; it develops its own proprietary drugs using GIPET(r) and partners with other pharmaceutical companies in developing oral GIPET(r) formulations of their products.
Merrion currently has four internal product development programs based on its GIPET(r) technology.
* Orazol (MER 101) is an oral bisphosphonate for oncology indications currently in Phase II development. This product aims to allow cancer patients with bone metastases take a weekly tablet to get the gold standard treatment in this area, rather than an IV infusion. * Almerol (MER 103) which is also an oral bisphosphonate, for the treatment of osteoporosis, has completed Phase II clinical trials. Based on the market leading drug, this programme aims to provide similar absorption in just 8% of the current dose, with a simplified dosing regimen and an improved side effect profile. * Acyline (MER 104) is a second oral oncology product for the treatment of prostate cancer, which is in Phase I clinical testing. This programme aims to be the first oral product in the area of GnRH analogues. Products in this class also have several other male/female health indications. * MER 102 an oral anticoagulant is in preclinical testing. This programme aims to be the first oral product in LMWH class of drugs, and to offer patients the alternative to daily injections.
Merrion has agreements with several pharmaceutical companies.
Merrion has operations in Dublin, Ireland and Wilmington, NC, USA.
About Novo Nordisk
Novo Nordisk (www.novonordisk.com) is a healthcare company and a world leader in diabetes care. In addition, Novo Nordisk has a leading position within areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo Nordisk employs approximately 26,550 employees in 80 countries, and markets its products in 179 countries. Novo Nordisk's B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under the symbol 'NVO'. For more information, visit novonordisk.com.
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