Novo Nordisk and EMIS Modify Deal - Analyst Blog
May 01 2013 - 12:18PM
Zacks
Novo Nordisk A/S (NVO) and Emisphere
Technologies, Inc. (EMIS) 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
Eligentechnology.
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
Nordisk.
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 sales.
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 2012.
Novo Nordisk currently carries a Zacks Rank #3 (Hold).
Currently, companies like Catalyst Pharmaceutical Partners
Inc. (CPRX) and UCB (UCBJF) look more
attractive with a Zacks Rank #1 (Strong Buy).
CATALYST PHARMA (CPRX): Free Stock Analysis Report
EMISPHERE TECH (EMIS): Free Stock Analysis Report
NOVO-NORDISK AS (NVO): Free Stock Analysis Report
UCB SA (UCBJF): Get Free Report
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