Novo Nordisk Invests in Diabetes Treatment With Deal That Could Exceed $800 Million
17 August 2018 - 8:06PM
Dow Jones News
By Carlo Martuscelli
Novo Nordisk A/S (NOVO-B.KO) said Friday that it has bought
Ziylo--a U.K.-based company developing advanced treatments for
diabetes--in a deal that could be worth more than $800 million.
The Danish pharmaceutical company didn't lay out the specific
financial terms of the deal, but said it consisted of an upfront
payment, with future payments contingent on certain milestones. The
total payout could exceed $800 million once certain development,
regulatory and sales milestones are achieved, it said.
Under the terms of the deal, Novo Nordisk acquired the rights to
Ziylo's glucose binding molecule platform, a technology for the
development of a next-generation insulin therapy called glucose
responsive insulin. The new therapy could allow diabetic patients
to avoid hypoglycemia, a risk associated with existing insulin
treatments, it said.
Novo Nordisk said that before the deal closed, Ziylo spun out a
number of its research activities to a new company called
Carbometrics. Novo Nordisk said it entered a research collaboration
with the new company, which retains the rights to develop glucose
monitoring applications.
"We believe the glucose binding molecules discovered by the
Ziylo team together with Novo Nordisk world-class insulin
capabilities have the potential to lead to the development of
glucose responsive insulin which we hope can remove the risk of
hypoglycaemia and ensure optimal glucose control for people with
diabetes," Novo Nordisk's senior vice president of global drug
discovery, Marcus Schindler, said.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
August 17, 2018 05:51 ET (09:51 GMT)
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