Kernel Investee Company Merrion Pharma signs License Agreement with Nova Nordisk up to US$58m
November 11, 2008: Merrion Pharmaceuticals (IEX:MERR)and Novo Nordisk A/S (NYSE: NVO), a world leader in diabetes, have entered into a
Development and License Agreement to develop and commercialise oral formulations of Novo Nordisk’s proprietary Insulin
analogues, using Merrion’s proprietary GIPET® technology. Under the agreement Merrion will receive up to US$58 million for
the first product developed under the agreement to reach the market based on achievement of certain development, regulatory
and sales milestones as well as royalties on sales. The 2008 Frost & Sullivan Osteoporosis Technology Innovation of the Year
Award has been awarded to the Irish Company Merrion Pharmaceuticals (IEX: MERR) for its Almerol (formerly known as MER-
103) product.
Under the agreement, Novo Nordisk is responsible and will pay for the development and commercialisation of the
product candidates. Merrion is responsible for the development and manufacture of the initial clinical batches, with
the work overseen by a joint development committee. Novo Nordisk and Merrion have collaborated since 2007 to
test the utility of Merrion’s GIPET® technology in preclinical models. The total global insulin market is estimated to
be worth around US$9bn worldwide (Ref: Datamonitor IMHC0209, August 2008) and this partnership between
Merrion and Novo Nordisk can potentially deliver a major new oral product for people with diabetes. The agreement
also provides Novo Nordisk with the ability to develop additional oral formulations of Novo Nordisk insulin
compounds using Merrion’s proprietary absorption enhancing GIPET® technology. Merrion will be due additional
milestone payments for any additional products developed under the agreement.
“This partnership with Novo Nordisk is important for Merrion in many ways,” said John Lynch Chief Executive Officer of Merrion,
“it brings Merrion’s exciting technology for the oral administration of biopharmaceuticals together with Novo Nordisk, a world
leader in the field of diabetes and a leader in peptide/protein based drugs. To date our collaboration with Novo Nordisk has been
very positive and productive and today’s agreement has the potential to offer significant new solutions to millions of people with
diabetes worldwide, which provides a strong motivation for the Merrion team.
“We are delighted to continue working with Merrion, who have been an excellent partner, and their unique GIPET® technology.
This programme is an important part of Novo Nordisk’s strategy within diabetes research”, said Peter Kurtzhals, Senior Vice
President, Novo Nordisk’s Diabetes Research Unit.
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