NPS Pharmaceuticals and Nycomed Announce Licensing Agreement for GATTEX(TM) in Territories Outside North America



    
    Nycomed Acquires Exclusive Rights Outside North America in Deal Valued at
    up to $185 Million Plus Royalties
    

    PARSIPPANY, NJ and ZURICH, Switzerland, Sept. 26 /CNW/ -- NPS
Pharmaceuticals, Inc. (Nasdaq:   NPSP) and Nycomed announced today that they
have entered into a definitive agreement which licenses to Nycomed the rights
to develop and commercialize GATTEX(TM) (teduglutide) outside the United
States, Canada and Mexico for the treatment of gastrointestinal disorders. 
NPS will retain the right to develop and commercialize GATTEX in North
America.
    Under the terms of the agreement, NPS has the potential to earn up to
$185 million plus royalties.  As an upfront payment, NPS will receive from
Nycomed $35 million:  a $10 million nonrefundable commitment fee upon signing
the agreement and $25 million within two weeks following the announcement of
topline results from the recently completed Phase 3 study of GATTEX in
patients with short bowel syndrome (SBS), which is expected early in the
fourth quarter of 2007.  Nycomed has the right to end the collaboration within
two weeks of the announcement of these results and forego the $25 million
payment.
    In addition, NPS has the potential to earn more than $150 million in
payments related to the attainment of certain regulatory milestones for the
SBS indication, the successful development of new indications and the
achievement of sales-based milestones.  Additionally, the agreement provides
for double-digit royalties on GATTEX sales in the Nycomed territories.  NPS
will complete the current GATTEX clinical program in short bowel syndrome and
Nycomed will share future development costs 50:50 with NPS to advance and
broaden the indications for GATTEX.
    A potential first-in-class drug, GATTEX is a proprietary analog of
naturally occurring human glucagon-like peptide 2 (GLP-2), a peptide secreted
primarily in the distal intestine and involved in the regeneration and repair
of the intestinal epithelium.  A previous Phase 2 proof-of-concept clinical
study in patients with SBS showed that daily subcutaneous injections of GATTEX
resulted in significant growth of the intestinal lining and improved dietary
absorption of nutrients and fluids.  Once the company has completed its
analysis of data from the Phase 3 SBS study, it expects to pursue a pre-NDA
meeting with the U.S. Food and Drug Administration to discuss its potential
plan for submitting a New Drug Application in mid-2008.  NPS is also pursuing
development of GATTEX as a possible treatment for chemotherapy-induced
gastrointestinal mucositis in cancer patients and necrotizing enterocolitis in
preterm infants.
    NPS president and CEO Dr. Tony Coles stated, "This agreement expands our
relationship with Nycomed and brings us an important strategic partner for
GATTEX outside North America.  The collaboration provides us with a partner
that will help us pursue a full development program for GATTEX worldwide, not
only in SBS, but potentially in other indications, as well.  We welcome this
opportunity to collaborate with Nycomed to advance GATTEX in these key
territories and look forward to our work together on realizing the full
potential of this unique compound."
    Nycomed CEO Hakan Bjorklund stated, "We believe GATTEX has the potential
to be an important new therapy for serious gastrointestinal conditions.  We
are excited to add GATTEX to our product pipeline, as it perfectly matches our
development and marketing capabilities in the gastroenterology field.  We look
forward to developing GATTEX as a partner of NPS."
    Nycomed markets Preotact(R) (parathyroid hormone for injection) in the
European Union under license from NPS and has rights to commercialize the drug
in all territories outside the United States, Japan and Israel.  Preotact is
the European brand name for PREOS(R) which NPS licensed to Nycomed in 2004 for
development and marketing in Europe as a treatment for osteoporosis in
postmenopausal women.
    
    About NPS
    
    NPS Pharmaceuticals is a biopharmaceutical company focused on the
development and commercialization of small molecules and recombinant proteins
as drugs, primarily for the treatment of metabolic, bone and mineral, and
central nervous system disorders. The company has drug candidates in various
stages of clinical development. Additional information is available on the
company's website, http://www.npsp.com.
    
    About Nycomed
    
    Nycomed is a pharmaceutical company that provides medicines for
hospitals, specialists and general practitioners, as well as over-the-counter
medicines in selected markets.  The company is active within a range of
therapeutic areas, including cardiology, gastroenterology, osteoporosis,
respiratory, pain and tissue management. New products are sourced both from
own research and from external partners.
    Operating throughout Europe and in fast-growing markets such as Latin
America, Russia/CIS and the Asia-Pacific region, Nycomed has a presence in
about 50 markets worldwide.  Privately owned, the combined group had annual
sales of approximately euro 3.4 billion and an EBITDA of euro 933.4 million
(2006 results).  For more information visit http://www.nycomed.com
    Note: Statements made in this press release, which are not historical in
nature, constitute forward-looking statements for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and beliefs and are
subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. All information in this press release is as of September 26, 2007
and we undertake no duty to update this information. A more complete
description of these risks can be found in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for the
year-ended December 31, 2006 and our Quarterly Report on Form 10-Q for the
quarter-ended June 30, 2007.




For further information:

For further information: Brandi Simpson of NPS Pharmaceuticals, Inc., 
+1-801-883-2397 Web Site: http://www.npsp.com                 
http://www.nycomed.com

Organization Profile

NPS PHARMACEUTICALS, INC.

More on this organization

NYCOMED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890