The agreement includes Metabolex's two clinical compounds, metaglidasen and MBX-2044, and additional follow-on compounds for which Ortho-McNeil, a Johnson & Johnson company, has received an exclusive license for worldwide development and commercialization.
In addition, as part of the transaction, Metabolex gains exclusive license to a PPAR-delta agonist program, including RWJ-800025, which has completed phase Ib clinical testing, and a cannabinoid receptor-1 inverse agonist clinical program, which targets obesity.
This agreement also includes a target collaboration in which Ortho-McNeil and Metabolex will work together to screen metabolic disease targets identified by Metabolex.
“This agreement enables Metabolex to build a significant franchise in metabolic disease,” said Dr Harold Van Wart, president and CEO of Metabolex. “Not only does the agreement include development and commercialization of our lead best-in-class type 2 diabetes products, but it also enhances and broadens our mid-stage clinical programs and advances our pipeline with the screening collaboration on novel targets capable of producing future, first-in-class therapies.”
The transaction will provide Metabolex with $40 million in equity and convertible financing. Metabolex is eligible to receive up to $508 million for achievement of specified development and sales milestones. As part of the agreement, Metabolex will conduct the ongoing phase II/III study of metaglidasen and the phase I trial of MBX-2044 with clinical, regulatory and technical support from Ortho-McNeil.
Metabolex retains co-promotion rights for all compounds in the US and is eligible to receive double-digit, tiered royalties on all product sales up to 21%.