Novo Nordisk buys rights to Emisphere technology for oral insulin for $57.5 million; enters deal with Merrion Pharma

In a deal that will cost it $57.5 million, Danish insulin giant Novo Nordisk (NYSE: NVO) has entered into an exclusive agreement to develop and commercialize oral formulations of its insulins, which have the potential of treating diabetes, using USA-based Emisphere’s (OTC BB: EMIS) Eligen technology. It also entered into a technology accord with Ireland’s Merrion Pharmaceuticals.

This is the second licence agreement between the two companies. The first was for the development of oral formulations of GLP-1 receptor agonists, which was signed in June 2008 with a potential drug currently in a Phase I clinical trial and worth a potential $87 million to the US firm.

The insulin new accord includes $57.5 million in potential product development and sales milestone payments to Emisphere, of which $5 million will be payable upon signing, as well as royalties on sales. Further financial details of the agreement were not disclosed.