Merrion announces license with Novo Nordisk

 

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RNS Number : 7404L 
Merrion Pharmaceuticals Public Limi 
16 January 2009 
 

Merrion Pharmaceuticals Plc 
16 January 2009. 
 
 
 
 
Merrion Announces License Agreement with Novo Nordisk to Develop Oral 
Formulation of GLP-1 Receptor Agonist(s) - Novo Nordisk makes equity investment 
in Merrion 
 
 
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 a Novo Nordisk proprietary GLP-1 
receptor agonist, using Merrion's proprietary GIPET  technology. This is the 
second license agreement between the two companies concerning Merrion's GIPET 
technology - the first agreement for the development of oral insulin analogues 
was signed in November 2008. 
 
 
Under this new license 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. 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 agreement also provides Novo Nordisk with the ability to develop additional 
oral formulations of Novo Nordisk GLP-1 receptor agonist compounds using 
Merrion's proprietary absorption enhancing GIPET  technology. Merrion will be 
due additional milestone payments for any additional products developed under 
the agreement. 
 
 
Novo Nordisk is subscribing for 300,000 new ordinary shares in Merrion 
Pharmaceuticals at a price of EUR3 per share. An application for admission to 
trading of these shares has been made to the Irish Stock Exchange and is 
expected to take place on 20 January 2009. 
 
 
"This second partnership with Novo Nordisk builds on the first oral insulin 
analogue agreement signed in November 2008" said John Lynch Chief Executive 
Officer of Merrion. "We believe that this development further demonstrates the 
potential for long term partnership between our two companies and also enhances 
our capacity to develop our other products and technologies" 
 
 
"We are happy to have signed this partnership agreement with Merrion, to use the 
GIPET  technology in developing potential oral formulations of Novo Nordisk's 
proprietary GLP-1 receptor agonists. This partnership is another step in Novo 
Nordisk's research efforts in developing new treatments for people with 
diabetes" said Peter Kurtzhals, Senior Vice President, Novo Nordisk's Diabetes 
Research Unit. 
 
 
In November 2008, Merrion announced a separate Development and License Agreement 
with Novo Nordisk to develop and commercialise oral formulations of Novo 
Nordisk's proprietary Insulin analogues, using Merrion's proprietary GIPET 
technology. Under this (Nov 08) agreement Merrion will receive up to US$58 
million milestones 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 development fees and royalties on sales. 
 
 
 
 
Goodbody Corporate Finance 
Linda Hickey 
Diane Hodgson 
[phone] 
 
 
Merrion Pharmaceuticals plc 
Jonathan O'Connell 
[phone] 
[phone] 
 
 
Media enquiries 
Young Communications 
Wally Young 
[phone] 
[phone] 
[e-mail] 
 
 For further information: www.merrionpharma.com 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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