NPS/AstraZeneca end mGluR collaboration

The USA's NPS Pharmaceuticals has ended, by mutual agreement, its collaboration with Anglo-Swedish drug major AstraZeneca to discover and develop drugs targeting metabotropic glutamate receptors (mGluRs). AstraZeneca has agreed to pay NPS $30.0 million to acquire the US company's assets related to the research collaboration. NPS intends to use the proceeds to support further development of its late-stage product pipeline. On the day of the news, October 9, shares in NPS increased 13% to $5.37.

The two companies have been collaborating since March 2001 to discover and develop drugs that are active at these receptors and have identified several candidates currently in preclinical and Phase I studies. Under the terms of the agreement, NPS will no longer provide research support for or maintain interests in any drugs discovered, developed and commercialized under this program.

Tony Coles, chief executive of NPS, said, "monetizing our interests in the mGluR program at this time enables the company to create greater near-term value for its shareholders." It intends to use the monies from this accord, as well as the previously-announced Nycomed Gattex (teduglutide) deal (Marketletter October 2) and the $10.0 million in savings over the next two years from this transaction to support the further development of its late-stage pipeline products: Preotact (full-length parathyroid hormone [PTH 1-84]) for osteoporosis in menopausal women; and Gattex in specialty indications. "We have had a very productive collaboration with AstraZeneca and wish them continued success with this program," he added.