Novartis and Novo Nordisk partner to commercialize novel insulin sensitizer (NN622) in North America
Novartis Pharma AG and Novo Nordisk today announced an agreement on the commercialization of NN622, currently in development for the treatment of type 2 diabetes. Under the terms of the agreement Novartis acquires exclusive rights to commercialize the compound in the US, Canada and Mexico, with Novo Nordisk retaining certain detailing rights for the US. Novo Nordisk continues to be responsible for development and global regulatory approval. The agreement is subject to regulatory clearance in the US.
Novartis will make upfront and milestone payments subject to progress relating to specified events, and will pay royalties. Financial terms of the transaction were not disclosed.
Commenting on the agreement, Thomas Ebeling Chief Executive Officer of Novartis Pharma said: "This novel compound adds further depth to our pipeline of projects addressing the serious and growing challenge of type 2 diabetes and its associated risks of cardiovascular disease. The agreement provides a strong near-term opportunity for Novartis in the metabolic and cardiovascular diseases area. We look forward together with diabetes leader Novo Nordisk to being early in bringing the benefits of this new approach to patients".
Lars Almblom Jørgensen, Chief Operating Officer of Novo Nordisk said: "We are very pleased with this agreement, securing a strong marketer as Novartis with its large, proven and dedicated sales force to support NN622 in North America. Its launch capabilities make it the partner of choice for Novo Nordisk in this area".
NN622 is a PPAR (peroxisome proliferator-activated receptor) alpha and gamma agonist, which in preclinical and early clinical trials has shown potential to regulate blood glucose and diabetic dyslipidemia. The compound, inlicensed by Novo Nordisk from Dr Reddy's Laboratories, is chemically and pharmacologically different from presently marketed PPAR agonists.
Increasing scientific evidence indicates that targeting both too high blood sugar levels and often too high lipid levels may improve treatment outcomes for type 2 diabetes patients. NN622 is currently in phase II clinical trials, and Novo Nordisk expects to complete the clinical proof of concept trials later this year. The compound is expected to be among the first to reach the market from a new generation of dual-acting sensitizers currently in development.
Other news from the department
