Ulimorelin is entering Phase 3 development for the treatment of gastrointestinal dysmotility conditions in acute care settings.
As per the agreement, Norgine is expected to make an upfront payment of $8m and will also make an equity investment in Tranzyme. Further, Tranzyme is eligible to receive up to approximately $150m if certain development, regulatory and commercial milestones are achieved.
Tranzyme is also expected to receive escalating double-digit royalties on net sales in the licensed territories. The companies will jointly fund further development of Ulimorelin and anticipate initiating pivotal Phase 3 studies in the second half of 2010.
Vipin Garg, president and CEO of Tranzyme, said: “Norgine’s focus on pharmaceutical products that address unmet medical needs, and their development and commercial experience and expertise in European markets, make them an ideal strategic and co-development partner for Tranzyme. This partnership allows us to monetize part of the value of ulimorelin, while still retaining the significant upside of North American and Asian markets.”
Peter Stein, chairman and CEO of Norgine, said: “There is a critical need for a new, safe and effective prokinetic drug for use in acute care settings, as there are no satisfactory treatments on the market. We have been very impressed with the work that Tranzyme have done to take ulimorelin through Phase 2 development and we are excited to be working with them on this innovative therapy, which could bring relief to millions of patients.”