Diamyd Medical Signs Agreement for Diabetes Therapy
Diamyd Medical AB has signed an agreement with Ortho-McNeil-Janssen
Pharmaceuticals, Inc. (OMJPI), a Johnson & Johnson company, to develop
and commercialize the Diamyd® diabetes therapy.
The agreement relates to the development and world-wide
commercialization of the GAD65 antigen-based therapy (Diamyd®) for the
treatment and prevention of type 1 diabetes and associated conditions.
OMJPI will make an upfront payment of USD 45 million, and under the
terms of the agreement, Diamyd has the potential to receive additional
development and sales milestone payments of up to USD 580 million, as
well as tiered royalties on future sales. The parties will equally share
costs for the development program until results from the ongoing EU
Phase III study, expected in the first half of 2011. OMJPI has the right
to fully assume responsibility for the development program upon
reviewing the results.
Following its strategy, Diamyd has secured exclusive rights for
commercialization in the Nordic countries. Diamyd also retains the
rights to the therapeutic use of the GAD65 gene and derivatives,
fragments and variants of the GAD65 protein.
"OMJPI is an ideal partner for Diamyd with their significant global
resources and strong commitment to diabetes," says Elisabeth Lindner,
CEO and President of Diamyd Medical. "This agreement will allow Diamyd
to expand and become a significant player as a specialty pharma company
in the Nordic region, but most importantly it should make this
transformational beta cell preserving therapy available to patients
around the world."
The transaction is expected to close in the third quarter of 2010,
contingent upon clearance under the Hart-Scott-Rodino Anti-Trust
Improvements Act.
Destum Partners Inc, North Carolina, United States, supported Diamyd
Medical in the partner search and acted as advisor through the due
diligence process.
Diamyd is hosting a press conference today, June 22, at 14:00 in
Stockholm. For more information visit www.diamyd.com.
For more information, please contact:
Elisabeth Lindner, President and CEO Diamyd Medical AB (publ.)
Phone: +46 8 661 0026
For pictures and press material, please contact:
Andreas Ericsson, Diamyd Medical AB (publ.)
andreas.ericsson@diamyd.com
Phone: +46 8 661 0026
