Isis enters broad R&D accord with J&J's Ortho-McNeil on metabolic disorders

Isis Pharmaceuticals has entered a broad collaboration with fellow USA-based Ortho-McNeil, a unit of health care major Johnson & Johnson, to discover, develop and commercialize antisense drugs to treat metabolic diseases, including type 2 diabetes. As part of the accord, Isis will grant worldwide development and commercialization rights to two of its diabetes drug candidates, ISIS 325568 and ISIS 377131, which selectively inhibit the production of glucagon receptor and glucocorticoid receptor, respectively. Ortho-McNeil will provide funding to support the joint discovery of novel drugs to treat metabolic diseases, including diabetes and obesity. J&J will pay Isis a $45.0 million upfront licensing fee, and will provide the firm with R&D funding over the period of the accord. Isis could also receive over $230.0 million in milestone payments, as well as sales-based royalties.