Novo Nordisk expands licensing rights to AERx iDMS

Published: 29-Sep-2004

Danish company Novo Nordisk and US drug delivery specialist Aradigm Corporation have signed an agreement giving Novo Nordisk full development and manufacturing rights to the AERx insulin Diabetes Management System (iDMS) programme.


Danish company Novo Nordisk and US drug delivery specialist Aradigm Corporation have signed an agreement giving Novo Nordisk full development and manufacturing rights to the AERx insulin Diabetes Management System (iDMS) programme.

Under the agreement, Novo Nordisk will purchase manufacturing equipment and leasehold improvements currently utilised by Aradigm in the AERx iDMS programme for an estimated cash payment of US$55m. Novo Nordisk will assume all further responsibilities for AERx iDMS development and funding. Aradigm will maintain a long-term interest in the programme through an adjusted royalty on future AERx iDMS net sales.

As a result of the expanded licensing agreement, Novo Nordisk has formed a new affiliate - Novo Nordisk Delivery Technologies - based in Hayward, California, which will assume the leases and operational overhead on two of Aradigm's current three buildings, and will offer employment to approximately 130 Aradigm employees who have been dedicated to iDMS. The companies have the option to continue collaborating in specific areas such as next-generation AERx technologies. If needed, Novo Nordisk will provide certain contract manufacturing services to support other AERx programmes for up to three years.

'Novo Nordisk remains committed to the development of inhaled insulin,' said Lars Rebien Sorensen, president and ceo. 'The AERx iDMS is an excellent fit within our portfolio of insulin delivery systems.'

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  • Novo Nordisk Pharmatech
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