AstraZeneca unit links with NGM Biopharma on diabetes and obesity research

Anglo-Swedish drug major AstraZeneca’s (LSE: AZN) US biologics R&D subsidiary MedImmune has entered into an exclusive agreement with US venture capital backed NGM Biopharmaceuticals to discover, develop and commercialize novel therapeutics from NGM’s enteroendocrine cell (EEC) program for the treatment of type 2 diabetes and obesity.

Under the terms of the accord, MedImmune will make an undisclosed upfront payment and provide NGM with research funding over the course of the collaboration. If certain development, regulatory and commercial milestones are achieved, NGM will be entitled to receive various payments, as well as royalties on worldwide product sales.

EECs represent less than 1% of all gastrointestinal (GI) cells, but produce virtually all of the known GI hormones, including GLP-1. EECs are an underexplored source of novel hormones that could play a major role in the positive and negative regulation of metabolism and glucose homeostasis, says AstraZeneca, noting that NGM has established a proprietary platform capable of isolating and analyzing EECs in order to identify novel secreted peptide hormones that are potentially linked to the profound metabolic effects of bariatric surgery and serve as potential targets for the treatment of metabolic diseases.