Novo Nordisk enters deal with Emisphere

US drug developer Emisphere and Denmark's Novo Nordisk have entered into an exclusive license agreement for the development and commercialization of the Danish firm's GLP-1 receptor agonists, which have the potential to treat type 2 diabetes.

Under the terms of the agreement, Emisphere will be paid $87.0 million in development and sales milestones, with at least $10.0 million to be received in the first year of the license, as well as royalties on sales. In return, the US firm will utilize its eligen technology to develop a carrier for the drug. It also retains the option to develop oral formulations of other Nordisk compounds. The Danish firm will be responsible for the development and commercialization of the resulting product candidates. On the day of the news, June 23, Emisphere's shares rose 22%, to $2.42 in afternoon trading.

Michael Novinski, chief executive of Emisphere, said the deal was important as, "it couples Emisphere with... the worldwide leader in the field of diabetes research [and] it also positions our eligen technology in such a way that helps to bring innovative solutions to the pharmaceutical development arena."