Under the agreement, Merrion will receive up to $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.
Novo Nordisk is responsible and will pay for the development and commercialization 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.
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 Gastrointestinal Permeation Enhancement Technology. Merrion will be due additional milestone payments for any additional products developed under the agreement.
John Lynch, CEO of Merrion, said: “This partnership with Novo Nordisk is important for Merrion in many ways. It brings Merrion’s exciting technology for the oral administration of biopharmaceuticals together with Novo Nordisk, a provider of peptide or 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.”