NPS Pharmaceuticals, Inc.
Takeda Pharmaceutical Company Limited
) recently amended their deal regarding a couple of drugs.
Following the amended deal, NPS Pharma bought back the entire
global rights to short bowel syndrome therapy teduglutide and
recombinant human parathyroid hormone 1-84 (PTH 1-84) from
While teduglutide is marketed in the US under the trade name
Gattex, the drug is approved in Europe under the trade name
Revestive. The drug was approved in the EU and the US in August
and December last year, respectively. PTH 1-84 was approved in
the EU in Apr 2006 for treating women suffering from
The drug is marketed in the EU under the trade name Preotact.
PTH 1-84 is being developed in the US for treating adults
suffering from hypoparathyroidism. The proposed trade name for
the drug in the US is Natpara. NPS Pharma intends to seek US
approval of PTH 1-84 for the hypoparathyroidism indication during
the course of the year.
NPS Pharma licensed the commercial rights to Preotact and
Revestive to Nycomed (now a wholly-owned subsidiary of Takeda) in
2004 and 2007, respectively, for ex- North American markets.
Under the terms of the amended deal, Takeda will assign its
assets pertaining to the 2 drugs to NPS Pharma. Moreover, Takeda
is entitled to receive common stock of NPS Pharma worth $50
Furthermore, NPS Pharma will have to make a milestone payment
to Takeda in the first calendar year, in which the combined
global net sales of the drugs will cross the $750 million mark.
NPS Pharma can make the payment either in cash ($30 million) or
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While NPS Pharma carries a Zacks Rank #3 (Hold), Takeda
Pharma holds a Zacks Rank #4 (Sell). Favorably placed stocks in
the pharma sector include
Lannett Company, Inc.
WuXi PharmaTech (Cayman) Inc.
). Both the stocks carry a Zacks Rank #1 (Strong Buy).