The deal, which could earn Merrion up to $58m, will see the firm develop an oral formulation of Novo’s GLP-1 receptor antagonist candidate, extending the initial agreement the two companies signed in November.
The agreement also covers to the development of other oral GLP-1 formulations, which will entitle Merrion to further payments, details of which are not being released.
In an interview, Merrion CEO John Lynch said that the deal was further positive news for the firm. He explained that: “while the drug candidates covered by the two agreements differ, the GIPET technology performs well across a wide range of peptide drugs.
Lynch added that, in common with the earlier insulin analogue agreement, the new deal will see Merrion develop and produce clinical trial supplies of the GLP-1 receptor antagonist.
Novo and Merrion have been collaborating since 2007 when the latter won a preclinical development contract. News of the second licensing agreement coincided with Novo’s purchase of a significant number of Merrion shares.
Lynch said that: “Having a shareholder like Novo was important for the firm,” and went on to say that the investment coupled with the existing development partnership created “a good platform for a long-term relationship”.
In a press statement Peter Kurtzhals, senior vice president of the Danish firm’s diabetes research unit, said: “This partnership is another step in Novo Nordisk’s research efforts in developing new treatments for people with diabetes.”