 |
|
|
|
|
|
|
 |
|
 Oral Parathyroid Hormone
In March, 2006
Emisphere Technologies, Inc. announced that Novartis
has executed its license option for the development
and commercialization of an oral parathyroid hormone
(PTH) using Emisphere's
eligen®
delivery technology. Emisphere is eligible for
milestone payments totaling up to a maximum of $30
million, plus royalties on sales of the product.
Recombinant PTH, currently approved for the
treatment of osteoporosis, is available only by
injection.
This license agreement marks the third between the
two companies: In 2000, Emisphere and Novartis
entered into a license agreement for the development
of oral salmon calcitonin, and a second agreement
followed in 2004, for the development of oral human
growth hormone.
The decision to execute the license follows the
January 6, 2006, U.S. Federal Court decision in
Indianapolis favoring Emisphere in its litigation
with Eli Lilly and Company ("Lilly"). The Court
agreed with Emisphere that Lilly had indeed breached
the agreement in multiple areas and that the PTH
agreement between Lilly and Emisphere was indeed
terminated.
In exchange for the option right, Emisphere received
from Novartis in 2004, $10 million in the form of a
convertible note. Repayment can be in cash or stock,
at Emisphere's option. The stock price will be set
at the time of conversion. |
|
|
|
|
|
|
|
|
|
