Metabolex, J&J Unit Sign $330M Deal for Type II Diabetes Drugs
June 23, 2010
By Catherine Hollingsworth
Staff Writer
Metabolex Inc. has entered a deal with Johnson & Johnson unit Ortho-McNeil-Janssen Pharmaceuticals Inc. to discover and develop compounds for Type II diabetes and other disorders.
Under the deal, Metabolex will receive an undisclosed up-front payment and could be eligible to receive development, regulatory, and commercial milestones up to $330 million. Metabolex also is eligible to receive royalties on worldwide sales of marketed products.
Metabolex and J&J have had several previous relationships over the years, all of them focused on the metabolic area, including the collaboration on MBX-8025 for dyslipidemia (abnormal levels of cholesterol, triglycerides or both). Because of that relationship, it was "natural for us to reach out to them," said Donald Hill, chief financial officer for Metabolex.
The companies said that for competitive reasons they were disclosing few details about the compounds covered under the deal. It does cover several compounds, all novel targets that are potential first-in-class for glucose-lowering, Hill said.
With its current resources, Metabolex would be unable to take any of its products on through approval. "We will need partners," Hill said. "We are a research-based company; we are not a commercial company" he said.
That said, Hill indicated that the company would likely seek to retain co-promotion rights down the road in any commercialization deal.
The up-front money will be used to fund work on its internal portfolio of preclinical and clinical candidates. The company has four clinical-stage compounds, all of them in Phase II.
MBX-2982, a compound that targets the G-protein coupled receptor-119 (GPR-119) to stimulate glucose-sensitive insulin secretion, has completed three Phase I trials in diabetes and is enrolling patients in a Phase II study. Metabolex hopes to partner that product as well.
MBX-102, which has been studied primarily in Type II diabetes, has been repurposed as a potential treatment for gout, and clinical trials are being considered. While gout trials typically are not as large as diabetes studies, a Phase III trial probably is not practical for Metabolex to take on, Hill explained.
MBX-2044, which has completed a Phase IIa trial, has been shelved for now and is not currently receiving any resources, Hill said. Both MBX-102 and MBX-2044 are insulin sensitizers.
MBX-8025 for dyslipidemia, which is already partnered with J&J, is completing carcinogenic studies, and a data read out for that project is expected later this year. The results will determine the future development path for that program, Hill said.
Metabolex, which was founded about a decade ago, has had numerous collaborations over the years with major drugmakers, bringing in well over $120 million in that time. The company is now "operating at a level where we haven't gone to the well that much with venture capitalists," Hill said.
J&J and its subsidiaries have been very active in the diabetes space, announcing a separate diabetes deal Tuesday with Sweden's Diamyd Medical AB. Under that deal, the two firms will work to develop and commercialize their GAD65 antigen-based therapy for the treatment and prevention of Type I diabetes and associated conditions.
