This is the second licensing agreement between the two companies concerning Merrion’s Gipet technology – the first agreement for the development of oral insulin analogs was signed in November 2008.
Under this new license 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. Novo Nordisk and Merrion have collaborated since 2007 to test the utility of Merrion’s Gipet technology in preclinical models.
The agreement also provides Novo Nordisk with the ability to develop additional oral formulations of Novo Nordisk GLP-1 receptor agonist compounds using Merrion’s proprietary absorption enhancing Gipet technology. Merrion will be due additional milestone payments for any additional products developed under the agreement.
Novo Nordisk is subscribing for 300,000 new ordinary shares in Merrion Pharmaceuticals at a price of E3 per share. An application for admission to trading of these shares has been made to the Irish Stock Exchange and is expected to take place on January 20, 2009.