NPS licenses ex-US Gattex rights to Nycomed in deal worth up to $185M plus royalties

The USA's NPS Pharmaceuticals has entered into a definitive agreement to license the rights to Danish drugmaker Nycomed to develop and commercialize Gattex (teduglutide) outside the USA, Canada and Mexico for the treatment of gastrointestinal disorders. NPS says it will retain the right to develop and commercialize Gattex in North America.

Under the terms of the deal, NPS has the potential to earn up to $185.0 million plus royalties. As an upfront payment, Nycomed will contribute $35.0 million, consisting of a $10.0 million non-refundable commitment fee upon signing the agreement and $25.0 million within two weeks following the announcement of topline results from the recently-completed Phase III study of Gattex in patients with short bowel syndrome, which is expected early in the fourth quarter of 2007.

Crucially, Nycomed has the right to end the collaboration within two weeks of the announcement of these results and forego the $25.0 million payment.