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news.Emisphere Technologies and Novo Nordisk have entered into an agreement to develop and commercialize oral formulations of four molecules for metabolic disorders.
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The deal is expected to generate more than $200m for Emisphere.
Under the deal, Emisphere will receive a $5m upfront licensing fee from Novo Nordisk, and is eligible to receive up to $62.5m in development and sales milestone payments for each of the three exclusively-licensed molecule classes, as well as up to $20m in development milestone payments for the non-exclusively licensed molecule class.
Additionally, Emisphere is expected to receive royalties on sales of each successfully commercialised product.
As part of the deal, the development of new oral formulations of Novo Nordisk’s investigational molecules targeting major metabolic disorders will be done using Emisphere’s oral Eligen drug-delivery technology.
Novo Nordisk now has the exclusive right to develop potential product candidates in three molecule classes as well as the non-exclusive right to develop potential product candidates in a fourth molecule class, using Eligen.
Novo Nordisk has also been granted an option to develop and commercialize any additional investigational molecules.
If the option is exercised, Emisphere would be entitled to receive an additional payment upon the exercise of each option for exclusive or non-exclusive development rights for each molecule class.
The firms have also amended their existing GLP-1 (semaglutide) license agreement by adding terms that include a $9m payment to Emisphere from Novo Nordisk as prepayment of a product development milestone, in exchange for lower future royalty payments.
Emisphere chief executive officer Alan Rubino said: "Novo Nordisk has been an important partner for many years and this expanded partnership further validates the Eligen Technology and its ability to facilitate absorption from the gastrointestinal tract.
"We have been intensely focused on transforming Emisphere into a robust commercial and development organization, seeking to identify and establish new, value-creating licensing opportunities for our Eligen Technology to major pharmaceutical companies, while realizing the significant market potential of our proprietary oral Eligen B12 product.
"This agreement with Novo Nordisk represents the first significant accomplishment in this ongoing, transformational effort and we look forward to future successes resulting from our global business development strategy."