Novo Nordisk Backs Scottish Biotech Firm

Novo Nordisk has signed an agreement with PPL Therapeutics, the UK's leading company in the area of transgenic animal rearing. Novo has invested L3.3 million ($5.1 million) in the company (representing a 9% equity stake) in return for the option to work with PPL in developing four specified transgenic animal-derived therapeutic proteins. Novo also has the option to make a further 7% investment in the privately-held company at any time before a market flotation.

The two companies are aiming to develop transgenic animals producing therapeutic compounds in their milk. Two projects which have been revealed include rearing animals which can make protein C and fibrinogen. Under the terms of the agreement, PPL will be responsible for the development of transgenic production processes for selected target proteins and for supplying part-purified materials for final purification for clinical trials and commercial sale. Novo will then be responsible for all the remaining steps in product development, including clinical trials and the marketing process.

PPL has attracted investment from a number of other pharmaceutical companies, most notably Bayer which paid more than L10 million for the rights to transgenic sheep-derived alpha-1 antitrypsin. The company also has contracts with American Home Products' subsidiary Wyeth-Ayerst and Zymogenetics.