Under the terms of the agreement, NPS has the potential to earn up to $185 million plus royalties. As an upfront payment, NPS will receive from Nycomed $35 million, a $10 million nonrefundable commitment fee upon signing the agreement and $25 million within two weeks following the announcement of topline results from the recently completed Phase III study of Gattex in patients with short bowel syndrome (SBS).
In addition, NPS has the potential to earn more than $150 million in payments related to the attainment of certain regulatory milestones for the SBS indication, the successful development of new indications and the achievement of sales-based milestones. Additionally, the agreement provides for double-digit royalties on gattex sales in the Nycomed territories.
A potential first-in-class drug, Gattex is a proprietary analog of naturally occurring human glucagon-like peptide 2 (GLP-2), a peptide secreted primarily in the distal intestine and involved in the regeneration and repair of the intestinal epithelium.
NPS president and CEO Dr Tony Coles said: “The collaboration provides us with a partner that will help us pursue a full development program for Gattex worldwide, not only in SBS, but potentially in other indications, as well.”