Swedish biotech firm Diamyd inks massive deal with Johnson & Johnson subsidiary
Shares in Diamyd Medical rally 28 percent as the biotech firm may land 625 million dollar in a massive diabetes agreement.
Elisabeth Lindner, chief executive officer of Diamyd Medical
• Karolinska Institute inks global research pact
Swedish biotech company Diamyd Medical has signed an deal with Ortho-McNeil-Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, to develop and commercialize the Diamyd diabetes therapy, the company said Tuesday.
OMJPI will make an upfront payment of 45 million dollar. Diamyd also has the potential to receive additional development and sales milestone payments of up to 580 million dollar, as well as tiered royalties on future sales.
Shares in Diamyd were up more than 28 percent in afternoon trading.
"OMJPI is an ideal partner for Diamyd with their significant global resources and strong commitment to diabetes," said Elisabeth Lindner, chief executive officer of Diamyd Medical. "This agreement will allow Diamyd to expand and become a significant player as a specialty pharma company in the Nordic region, but most importantly it should make this transformational beta cell preserving therapy available to patients around the world."
The agreement relate to the GAD65 antigen-based therapy for the treatment and prevention of type 1 diabetes and associated conditions.
The parties will equally share costs for the development program until results from the ongoing EU Phase III study, expected in the first half of 2011.
Last Updated (Tuesday, 22 June 2010 15:14)
