Novo Nordisk Buys Rights to Xoma's Diabetes Treatment for $295 Million
December 01 2015 - 9:52AM
Dow Jones News
By Chelsey Dulaney
Novo Nordisk A/S has agreed to buy the global rights to Xoma
Corp.'s Type 2 diabetes treatment in a deal worth up to $295
million.
The price tag includes a $5 million upfront payment to Xoma and
up to $290 million in milestones. Xoma also is eligible for
royalties on product sales.
Shares of Xoma rose 24% in recent premarket trading to $1.65 a
share.
Novo Nordisk will receive the exclusive development and
commercialization rights to Xoma's allosteric monoclonal antibodies
that regulate insulin receptors. Xoma will keep the
commercialization rights for rare diseases, though Novo Nordisk has
the right to add those indications to its license.
Novo Nordisk has been growing its roster of diabetes
treatments.
In September, Novo Nordisk's diabetes treatment, Tresiba, was
approved by the Food and Drug Administration after being rejected
in 2013. At the time, Novo Nordisk said it expected a U.S. launch
for Tresiba in the first quarter of 2016.
Novo Nordisk also has submitted a New Drug Application for
Xultophy, a once-daily single-injection combination of Tresiba and
the company's diabetes drug Victoza.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 01, 2015 09:37 ET (14:37 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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