Novo Nordisk gets exclusive license option for Islet Neogenesis Therapy

Danish company Novo Nordisk, of Copenhagen, has signed an agreement with Canadian biopharmaceutical company Transition Therapeutics, granting it an exclusive option to license Transition's Islet Neogenesis Therapy (INT).

Under the agreement, Novo Nordisk will provide up to US$500,000 to Transition for the further development of the technology. Following the review of research data from the ongoing development programme, which Transition expects in the third quarter of 2004, Novo Nordisk must exercise its exclusive option or the option will expire.

If the option is exercised, Novo Nordisk will execute a licensing agreement with an upfront payment and equity investment (at then market prices) of approximately $5m (Euro 4.4m) and development milestone payments potentially worth up to an additional $51.5m (Euro 44.8m). In addition, Transition will be entitled to receive commercial milestone payments and royalty payments on sales.

INT involves the use of naturally occurring peptides to regenerate the body's insulin-producing cells. The lead INT product, which has successfully completed a Phase I clinical trial, involves a short course of injections that stimulate the body to regenerate the insulin-producing cells. INT may also be used to increase the number and longevity of islet cells prior to transplantation, thus allowing for better utilisation of donor organs to perform a greater number of transplantations in diabetic patients.

'The participation of Novo Nordisk in the development of INT is not only a validation of the technology but it brings with it enormous resources and expertise in the field of diabetes,' said Tony Cruz, chairman and ceo of Transition.