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Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.
Dutogliptin Deal Announced
Forest Laboratories Inc. and Phenomix Corp. have agreed to collaborate on the development and commercialization of dutogliptin in North America. Dutogliptin, a dipeptidyl-peptidase-4 (DPP-4) inhibitor, is currently undergoing phase III clinical trials for type 2 diabetes. Forest will pay Phenomix $75 million, and the two companies will jointly develop and commercialize the drug in the United States; they will equally share profits and expenses and copromote it once it comes to market. Under their agreement, Forest retains the exclusive right to develop and commercialize dutogliptin in Canada and Mexico, and Phenomix will receive a royalty on Canadian and Mexican sales in exchange for the rights to use data from jointly funded trials in those countries. Phenomix could receive up to $340 million in upfront and milestone payments for the successful development and commercialization of dutogliptin in the United States.
Amylin Cuts Jobs, Expenses
Amylin will lay off 340 employees and reduce 2009 cash expenses by more than $80 million, the company announced last month. The cost-savings program comes as the company seeks to calm investors concerned over slower growth of exenatide (Byetta) and prospects for a long-acting formula. The cuts will not impact sales efforts for Byetta or Amylin's other diabetes drug, pramlintide (Symlin), the company assured investors. The reductions will affect administration, operations, and research and development. Although the company said it will continue to advance its two obesity drug candidates—a pramlintide/metreleptin combination and AC2307—it will attempt to prioritize programs and run research and development more efficiently. “Sales revenues have not met the expectations we had when we scaled up our organization,” Amylin CEO Daniel Bradbury said in a statement. The company reported $179.9 million in net product sales for Byetta in the third quarter, up almost 12% over the year-ago period. However, sales were up only 1% versus the second quarter, suggesting that reports linking Byetta with cases of pancreatitis are having an impact. Prescriptions declined “modestly” in the third quarter compared with the second quarter, Amylin reported.
CLX Buys ThryoTest
CLX Medical Inc. has purchased the ThyroTest hypothyroidism screening test from ThyroTec LLC for $750,000 plus 750,000 shares of preferred stock. The deal completes the purchase agreement entered into by the two companies in September. The $750,000 will be paid in the form of a note issued at 6% interest for a term of 30 months. Until the principal is paid in full, CLX agreed to pay ThyroTec a 10% royalty on net sales of ThyroTest. “We are pleased to enter into this agreement, which allows CLX to close the acquisition of ThyroTest without raising additional capital,” said Vera Leonard, chief executive officer of CLX Medical.
Bayhill to Get Vaccine Funding
Bayhill Therapeutics Inc. will receive up to $3 million from the Juvenile Diabetes Research Foundation to support its ongoing phase I/II clinical trial of BHT-3021, a type 1 diabetes vaccine. BHT-3021 is an antigen-specific immunotherapeutic DNA vaccine designed to reverse the underlying autoimmune disease process in diabetes, and slow down or halt further loss of pancreatic beta cell function. “We are very pleased to have the support of JDRF as we advance the clinical development of BHT-3021,” said Bayhill President and CEO Mark W. Schwartz, Ph.D. “This agreement demonstrates JDRF's commitment to funding ground-breaking clinical research and to the development of novel therapeutics that can potentially have an important impact on the lives of people with diabetes.” Funding will be based on Bayhill's attaining specific clinical milestones expected to be reached by the third quarter of 2009.
Xoma Intensifies Diabetes Focus
With $10.6 million cash on hand at the end of the third quarter, Xoma has shelved some clinical trials to focus resources on developing its anti-inflammatory candidate 052, an antibody interleukin-1b inhibitor, in type 2 diabetes. Citing unprecedented general economic conditions, Xoma executives unveiled restructuring plans on their Nov. 10 earnings call. Although the executives said that Xoma 052 had “blockbuster potential,” they announced that they were suspending studies not directly related to the diabetes indication—such as a phase I trial in gout patients—to reduce research and development expenses. The company has also put on hold the development of its antimicrobial peptide Xoma 629.
Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.
Dutogliptin Deal Announced
Forest Laboratories Inc. and Phenomix Corp. have agreed to collaborate on the development and commercialization of dutogliptin in North America. Dutogliptin, a dipeptidyl-peptidase-4 (DPP-4) inhibitor, is currently undergoing phase III clinical trials for type 2 diabetes. Forest will pay Phenomix $75 million, and the two companies will jointly develop and commercialize the drug in the United States; they will equally share profits and expenses and copromote it once it comes to market. Under their agreement, Forest retains the exclusive right to develop and commercialize dutogliptin in Canada and Mexico, and Phenomix will receive a royalty on Canadian and Mexican sales in exchange for the rights to use data from jointly funded trials in those countries. Phenomix could receive up to $340 million in upfront and milestone payments for the successful development and commercialization of dutogliptin in the United States.
Amylin Cuts Jobs, Expenses
Amylin will lay off 340 employees and reduce 2009 cash expenses by more than $80 million, the company announced last month. The cost-savings program comes as the company seeks to calm investors concerned over slower growth of exenatide (Byetta) and prospects for a long-acting formula. The cuts will not impact sales efforts for Byetta or Amylin's other diabetes drug, pramlintide (Symlin), the company assured investors. The reductions will affect administration, operations, and research and development. Although the company said it will continue to advance its two obesity drug candidates—a pramlintide/metreleptin combination and AC2307—it will attempt to prioritize programs and run research and development more efficiently. “Sales revenues have not met the expectations we had when we scaled up our organization,” Amylin CEO Daniel Bradbury said in a statement. The company reported $179.9 million in net product sales for Byetta in the third quarter, up almost 12% over the year-ago period. However, sales were up only 1% versus the second quarter, suggesting that reports linking Byetta with cases of pancreatitis are having an impact. Prescriptions declined “modestly” in the third quarter compared with the second quarter, Amylin reported.
CLX Buys ThryoTest
CLX Medical Inc. has purchased the ThyroTest hypothyroidism screening test from ThyroTec LLC for $750,000 plus 750,000 shares of preferred stock. The deal completes the purchase agreement entered into by the two companies in September. The $750,000 will be paid in the form of a note issued at 6% interest for a term of 30 months. Until the principal is paid in full, CLX agreed to pay ThyroTec a 10% royalty on net sales of ThyroTest. “We are pleased to enter into this agreement, which allows CLX to close the acquisition of ThyroTest without raising additional capital,” said Vera Leonard, chief executive officer of CLX Medical.
Bayhill to Get Vaccine Funding
Bayhill Therapeutics Inc. will receive up to $3 million from the Juvenile Diabetes Research Foundation to support its ongoing phase I/II clinical trial of BHT-3021, a type 1 diabetes vaccine. BHT-3021 is an antigen-specific immunotherapeutic DNA vaccine designed to reverse the underlying autoimmune disease process in diabetes, and slow down or halt further loss of pancreatic beta cell function. “We are very pleased to have the support of JDRF as we advance the clinical development of BHT-3021,” said Bayhill President and CEO Mark W. Schwartz, Ph.D. “This agreement demonstrates JDRF's commitment to funding ground-breaking clinical research and to the development of novel therapeutics that can potentially have an important impact on the lives of people with diabetes.” Funding will be based on Bayhill's attaining specific clinical milestones expected to be reached by the third quarter of 2009.
Xoma Intensifies Diabetes Focus
With $10.6 million cash on hand at the end of the third quarter, Xoma has shelved some clinical trials to focus resources on developing its anti-inflammatory candidate 052, an antibody interleukin-1b inhibitor, in type 2 diabetes. Citing unprecedented general economic conditions, Xoma executives unveiled restructuring plans on their Nov. 10 earnings call. Although the executives said that Xoma 052 had “blockbuster potential,” they announced that they were suspending studies not directly related to the diabetes indication—such as a phase I trial in gout patients—to reduce research and development expenses. The company has also put on hold the development of its antimicrobial peptide Xoma 629.
Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.
Dutogliptin Deal Announced
Forest Laboratories Inc. and Phenomix Corp. have agreed to collaborate on the development and commercialization of dutogliptin in North America. Dutogliptin, a dipeptidyl-peptidase-4 (DPP-4) inhibitor, is currently undergoing phase III clinical trials for type 2 diabetes. Forest will pay Phenomix $75 million, and the two companies will jointly develop and commercialize the drug in the United States; they will equally share profits and expenses and copromote it once it comes to market. Under their agreement, Forest retains the exclusive right to develop and commercialize dutogliptin in Canada and Mexico, and Phenomix will receive a royalty on Canadian and Mexican sales in exchange for the rights to use data from jointly funded trials in those countries. Phenomix could receive up to $340 million in upfront and milestone payments for the successful development and commercialization of dutogliptin in the United States.
Amylin Cuts Jobs, Expenses
Amylin will lay off 340 employees and reduce 2009 cash expenses by more than $80 million, the company announced last month. The cost-savings program comes as the company seeks to calm investors concerned over slower growth of exenatide (Byetta) and prospects for a long-acting formula. The cuts will not impact sales efforts for Byetta or Amylin's other diabetes drug, pramlintide (Symlin), the company assured investors. The reductions will affect administration, operations, and research and development. Although the company said it will continue to advance its two obesity drug candidates—a pramlintide/metreleptin combination and AC2307—it will attempt to prioritize programs and run research and development more efficiently. “Sales revenues have not met the expectations we had when we scaled up our organization,” Amylin CEO Daniel Bradbury said in a statement. The company reported $179.9 million in net product sales for Byetta in the third quarter, up almost 12% over the year-ago period. However, sales were up only 1% versus the second quarter, suggesting that reports linking Byetta with cases of pancreatitis are having an impact. Prescriptions declined “modestly” in the third quarter compared with the second quarter, Amylin reported.
CLX Buys ThryoTest
CLX Medical Inc. has purchased the ThyroTest hypothyroidism screening test from ThyroTec LLC for $750,000 plus 750,000 shares of preferred stock. The deal completes the purchase agreement entered into by the two companies in September. The $750,000 will be paid in the form of a note issued at 6% interest for a term of 30 months. Until the principal is paid in full, CLX agreed to pay ThyroTec a 10% royalty on net sales of ThyroTest. “We are pleased to enter into this agreement, which allows CLX to close the acquisition of ThyroTest without raising additional capital,” said Vera Leonard, chief executive officer of CLX Medical.
Bayhill to Get Vaccine Funding
Bayhill Therapeutics Inc. will receive up to $3 million from the Juvenile Diabetes Research Foundation to support its ongoing phase I/II clinical trial of BHT-3021, a type 1 diabetes vaccine. BHT-3021 is an antigen-specific immunotherapeutic DNA vaccine designed to reverse the underlying autoimmune disease process in diabetes, and slow down or halt further loss of pancreatic beta cell function. “We are very pleased to have the support of JDRF as we advance the clinical development of BHT-3021,” said Bayhill President and CEO Mark W. Schwartz, Ph.D. “This agreement demonstrates JDRF's commitment to funding ground-breaking clinical research and to the development of novel therapeutics that can potentially have an important impact on the lives of people with diabetes.” Funding will be based on Bayhill's attaining specific clinical milestones expected to be reached by the third quarter of 2009.
Xoma Intensifies Diabetes Focus
With $10.6 million cash on hand at the end of the third quarter, Xoma has shelved some clinical trials to focus resources on developing its anti-inflammatory candidate 052, an antibody interleukin-1b inhibitor, in type 2 diabetes. Citing unprecedented general economic conditions, Xoma executives unveiled restructuring plans on their Nov. 10 earnings call. Although the executives said that Xoma 052 had “blockbuster potential,” they announced that they were suspending studies not directly related to the diabetes indication—such as a phase I trial in gout patients—to reduce research and development expenses. The company has also put on hold the development of its antimicrobial peptide Xoma 629.