Novo Nordisk A/S
Emisphere Technologies, Inc.
) recently announced that they have modified their agreement for
the development and commercialization of oral formulations of
Novo Nordisk's proprietary GLP-1 receptor agonist candidates for
the treatment of type II diabetes, using Emisphere's proprietary
Emisphere and Novo Nordisk's original agreement dates back to
Jun 2008. Under the modified agreement, Novo Nordisk will make a
$10 million as prepayment for future development milestones.
Earlier, this payment was due during the commencement of phase II
and phase III testing of an oral GLP-1 candidate by Novo
We note that Novo Nordisk and Emisphere have another license
agreement. In Dec 2010, the companies entered into an exclusive
agreement to develop and commercialize oral formulations of Novo
Nordisk's insulins for the treatment of diabetes with the help of
the Eligen technology.
Under the deal, Novo Nordisk will make payments of $57.5
million to Emisphere on the achievement of development and sales
milestones. $5 million out of $57.5 million was paid as an
upfront fee. Emisphere is also entitled to royalties on
Novo Nordisk has a strong presence in the diabetes care
market. This segment recorded growth of 15% in 2012 with sales
coming in at DKK 60.9 billion. Modern Insulins generated strong
revenues(up 15%) driven by NovoRapid (up 16%) and Levemir (up
21%). 2012 results were driven by strong revenues from NovoRapid,
Levemir and Victoza. Victoza witnessed sales growth of 58% in
Novo Nordisk currently carries a Zacks Rank #3 (Hold).
Currently, companies like
Catalyst Pharmaceutical Partners Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
CATALYST PHARMA (CPRX): Free Stock Analysis
EMISPHERE TECH (EMIS): Get Free Report
NOVO-NORDISK AS (NVO): Free Stock Analysis
UCB SA (UCBJF): Get Free Report
To read this article on Zacks.com click here.