Novo Nordisk Buys ($48 Million) Diabetes Drug Rights For Islet Neogenesis

Novo Nordisk is investing in Transition Therapeutics Inc. and buying the worldwide rights to the Toronto company’s diabetes drug treatment for islet neogenesis. This research will provide competition to P&G’s research in the Ingap program. In a deal announced Monday, Novo Nordisk A/S will invest $6 million into Transition -acquiring a small stake in the company -and commit to various payments that could total up to $48 million US.

Novo gets exclusive worldwide rights to Transition’s Islet Neogenesis Therapy technology to regenerate insulin producing cells in the body to treat diabetes.

"The signing of this agreement with Novo Nordisk represents a key milestone for Transition and provides significant validation of our work to date," said Tony Cruz, chairman and CEO of Transition. "This relationship will allow us to advance key I.N.T. programs while working closely with a world leader in diabetes care."

Dr. Peter Kurtzhals, senior vice-president for discovery at Novo Nordisk,’ said Transition’s I.N.T. technology "is supporting our efforts of developing a cure for diabetes."

"Although this project is at an early stage we are excited about the results obtained so far and look forward to exploring the potential of this technology."