Swiss drug maker Nycomed will develop and commercialize NPS Pharmaceuticals' potential first-in-class glucagon-like peptide 2 analogue Gattex (teduglutide) for treatment of short bowel syndrome and other potential indications outside North America, the firms announced Oct. 31.

Bedminster, N.J.-based NPS will receive a $35 million upfront payment from Nycomed and could potentially receive $150 million in regulatory and sales-based milestones in addition to double-digit royalties for Gattex, the firms said.

Nycomed has licensing rights to develop and commercialize Gattex outside the U.S., Canada and Mexico; NPS retains rights in North America.

Top-line data from a Phase III study of Gattex in patients with short bowel syndrome is expected by year-end, the firms said.

NPS plans to submit an NDA for treatment of short bowel syndrome in mid-2008, and is hoping an approval for that indication will be the first of several for the drug. The company also plans to investigate Gattex as a possible treatment for chemotherapy-induced gastrointestinal mucositis in cancer patients and necrotizing enterocolitis in preterm infants.

If Gattex is approved, NPS estimates peak annual sales to reach $150 million to $250 million (¹ Also see "NPS Estimates Gattex Initial Market At $150 Million To $250 Million" - Pink Sheet, 11 October, 2007.).

The partnership offers NPS a welcome financial boost, as the firm had to consolidate operations and reduce its workforce from 196 to 35 employees in March (² Also see "NPS Downsizes, Seeks Partners To Develop Preos And Teduglutide" - Pink Sheet, 15 March, 2007.).

-Jamie Hammon (j.hammon@elsevier.com)

Swiss Pharma Nycomed Agrees To Market NPS’ Gattex Ex-U.S.

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