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. The agreement will not impact Novo Nordisk's expectations for the financial result for 2001.
Lars Almblom Jørgensen, chief operating officer of Novo Nordisk said: "We are very pleased with this agreement, securing a strong marketer like 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."
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."
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 dyslipidaemia. The compound, in-licensed 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 2 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 sensitisers currently in development.
About diabetes
Type 2 or non-insulin dependent diabetes affects about 140-150 million people worldwide and is a serious disease with increasing numbers of people being afflicted in both first and developing world countries. According to the US Centers for Disease Control (CDC), more than 16 million Americans have diabetes which is the seventh leading cause of death in the US and a contributor to heart disease, stroke, blindness, kidney disease, and non-traumatic leg and foot amputations. Diabetes rates in the US rose by approximately 6 per cent among adults in 1999, according to CDC
Type 2 or non-insulin dependent diabetes affects about 140-150 million people worldwide and is a serious disease with increasing numbers of people being afflicted in both first and developing world countries. According to the US Centers for Disease Control (CDC), more than 16 million Americans have diabetes which is the seventh leading cause of death in the US and a contributor to heart disease, stroke, blindness, kidney disease, and non-traumatic leg and foot amputations. Diabetes rates in the US rose by approximately 6 per cent among adults in 1999, according to CDC
Novo Nordisk (NYSE:NVO) is a focused healthcare company and world leader in diabetes care. In addition, Novo Nordisk has a leading position within areas such as coagulation disorders, growth disorders and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo Nordisk employs approximately 14,000 people in 68 countries and markets its products in 179 countries. . For further company information visit www.novonordisk.com.
Novartis (NYSE: NVS) is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 2000, the Group's ongoing businesses achieved sales of CHF 29.1 billion (USD 17.2 billion) and a net income of CHF 6.5 billion (USD 3.9 billion). The Group invested approximately CHF 4.0 billion (USD 2.4 billion) in R&D. Headquartered in Basel, Switzerland, Novartis employs about 69,000 people and operates in over 140 countries around the world. For further information please consult http://www.novartis.com.
Forward looking statement
This release contains certain forward looking statements that can be identified by the use of forward-looking terminology such as "will not impact", "novel compound", "adds depth to our pipeline", "strong near term opportunity", "new approach", "look forward", "potential", "may improve", "expects", "is expected" and "subject to". Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statement. In particular, there are no guarantees that the aforementioned agreement will result in a new diabetes therapy or any subsequent commercialisation of any product in any North American market. Any such commercialisation can be affected by, among other things, uncertainties relating to product research and development, clinical trials, regulatory actions or delays or government regulation generally, the ability to obtain or maintain patent or other intellectual property protection and competition in general.
This release contains certain forward looking statements that can be identified by the use of forward-looking terminology such as "will not impact", "novel compound", "adds depth to our pipeline", "strong near term opportunity", "new approach", "look forward", "potential", "may improve", "expects", "is expected" and "subject to". Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statement. In particular, there are no guarantees that the aforementioned agreement will result in a new diabetes therapy or any subsequent commercialisation of any product in any North American market. Any such commercialisation can be affected by, among other things, uncertainties relating to product research and development, clinical trials, regulatory actions or delays or government regulation generally, the ability to obtain or maintain patent or other intellectual property protection and competition in general.
For further information please contact:
Novo Nordisk
Media:
Outside North America:
Elin K Hansen
Phone (direct): (+45) 4442 3450
Outside North America:
Elin K Hansen
Phone (direct): (+45) 4442 3450
In North America:
Susan Jackson
Phone: (+1) 212 867 0123
Susan Jackson
Phone: (+1) 212 867 0123
Investors:
Outside North America:
Peter Haahr
Phone (direct): (+45) 4442 1207
Palle Holm Olesen
Phone (direct): (+45) 4442 6175
Outside North America:
Peter Haahr
Phone (direct): (+45) 4442 1207
Palle Holm Olesen
Phone (direct): (+45) 4442 6175
In North America:
Rasmus Jorgensen
Phone (direct): (+1) 212 878 9607
Rasmus Jorgensen
Phone (direct): (+1) 212 878 9607
Novartis International AG
Novartis Communication
Phone: (+41) 61 324 22 00
Phone: (+41) 61 324 22 00
Stock Exchange Announcement No 11 / 2001