Novartis and Novo join to market NN622

Novartis Pharma and Novo Nordisk have reached an agreement, subject toUS regulatory approval, for the commercialization of NN622 (DRF-2725) as a treatment for non-insulin dependent type 2 diabetes.

NN622, which is a peroxisome proliferator-activated receptor agonist, was licensed to Novo by Dr Reddy's three years ago. The compound is currently in Phase II clinical trials, and previous data suggest that it shows promise as a dual-action sensitizer that simultaneously lowers lipid levels and sensitizes insulin receptors to the circulating hormone. Phase III trials are expected to begin by the end of this year, and the drug is anticipated to be among the first of a new generation PPAR agonists to reach the market, a class which is currently headed by GlaxoSmithKline's Avandia (rosiglitazone) and Eli Lilly's Actos (pioglitazone HCl).

Under the terms of the agreement, Novartis will acquire exclusive rights to commercialize the drug in the USA, Canada and Mexico, whilst Novo will retain certain detailing rights for the USA, and will also continue to be responsible for development and global regulatory approval. Novartis will make upfront and milestone payments subject to progress to specified events and will also pay royalties once the drug reaches the market. Financial terms were not disclosed.