Swiss Pharma Nycomed Agrees To Market NPS’ Gattex Ex-U.S.
This article was originally published in The Pink Sheet Daily
Executive Summary
NPS gets $35 million upfront, potential $150 million in milestones and double-digit royalties from Nycomed for Gattex.
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Swiss drug maker Nycomed will develop and commercialize NPS Pharmaceuticals' potential first-in-class glucagon-like peptide 2 analogue Gattex (teduglutide) for treatment of short bowel syndrome and other potential indications outside North America, the firms announced Oct. 31. Bedminster, N.J.-based NPS will receive a $35 million upfront payment from Nycomed and could potentially receive $150 million in regulatory and sales-based milestones in addition to double-digit royalties for Gattex, the firms said. Nycomed has licensing rights to develop and commercialize Gattex outside the U.S., Canada and Mexico; NPS retains rights in North America. Top-line data from a Phase III study of Gattex in patients with short bowel syndrome is expected by year-end, the firms said. NPS plans to submit an NDA for treatment of short bowel syndrome in mid-2008, and is hoping an approval for that indication will be the first of several for the drug. The company also plans to investigate Gattex as a possible treatment for chemotherapy-induced gastrointestinal mucositis in cancer patients and necrotizing enterocolitis in preterm infants. If Gattex is approved, NPS estimates peak annual sales to reach $150 million to $250 million (1 (Also see "NPS Estimates Gattex Initial Market At $150 Million To $250 Million" - Pink Sheet, 11 Oct, 2007.)). The partnership offers NPS a welcome financial boost, as the firm had to consolidate operations and reduce its workforce from 196 to 35 employees in March (2 (Also see "NPS Downsizes, Seeks Partners To Develop Preos And Teduglutide" - Pink Sheet, 15 Mar, 2007.)). -Jamie Hammon ([email protected]) |