Chugai and Kowa expand Deberza license agreement

Japanese drugmaker Chugai Pharmaceutical (TYO: 4519) and privately-held Kowa Company have agreed to expand the license agreement to include the USA and European Union for Chugai’s original selective SGLT2 inhibitor, currently marketed by Kowa under the brand name Deberza (tofogliflozin hydrate) with the indication of type 2 diabetes in Japan.

Under this agreement, Kowa will acquire the exclusive rights to develop and market the product, and conduct research, development and marketing activities for the combination drug in the US and EU, while Chugai will be responsible for supplying the drug and active pharmaceutical ingredients (API). Under the terms of this accord, Chugai – which is majority-owned by Swiss pharma major Roche (ROG: SIX) - will receive an upfront fee, milestone payments and royalty from Kowa. Further financial terms were not disclosed.

Deberza is a selective inhibitor of sodium-glucose cotransporter 2 (SGLT2), created by Chugai. It lowers blood glucose by inhibiting glucose reabsorption in the kidney and inducing excretion of excess blood glucose into urine. For overseas development, Chugai and its strategic alliance partner Roche jointly conducted global Phase II trial with around 400 type 2 diabetes patients in 2009.