Boehringer Ingelheim and DeveloGen AG Announce an Asset Sale and Purchase Agreement
News May 18, 2009
Boehringer Ingelheim and DeveloGen AG have announced the signing of an asset sale and purchase and collaboration agreement in the field of diabetes, obesity, the metabolic syndrome, and other insulin resistance associated disorders.
Under the terms of the agreement, DeveloGen will receive an upfront payment of € 7 million, but has the opportunity to earn additional deferred payments such as potential milestone payments of up to € 237 million as well as tiered sales performance payments.
The milestone payments will be due upon achievement of certain preclinical and clinical as well as regulatory and commercial events. Further milestone payments may be achieved with additional compounds and/or additional approved indications. DeveloGen will also receive research payments to support further discovery and development efforts.
Dr. Cord Dohrmann, Chief Executive Officer of DeveloGen commented: "Using a unique functional genomics approach, DeveloGen has identified and validated a relevant target directly addressing insulin resistance. Initial compounds, that have been discovered and optimized by DeveloGen, have proven to be effective in preclinical models of type 2 diabetes and obesity, improving carbohydrate and lipid metabolism while reducing weight gain and preserving beta cell function.”
"Dr. Dohrmann continued: "Boehringer Ingelheim has built an impressive late stage pipeline of innovative metabolic disease programs. We are convinced that the leadership by Boehringer Ingelheim will provide optimal support for further development of this program."
Prof. Andreas Barner, Chairman of the Board of Managing Directors and Head of Corporate Board Division Pharma Research, Development and Medicine, added, "The steadily increasing prevalence of diabetes can only be addressed by new and improved therapies involving novel mechanisms with improved safety and efficacy. Boehringer Ingelheim is looking forward to collaborate with DeveloGen on this program which will complement and expand Boehringer Ingelheim’s current diabetes pipeline beyond our two late stage development compounds targeting DPP-4 and SGLT-2. We will continue to use our expertise in metabolic research, drug development and commercialization to make advances for patients suffering from these serious lifelong diseases."