Forest drops out of $340M diabetes drug deal with Phenomix
After Phenomix released reportedly optimistic results from its phase 3 clinical trial studying the effectiveness of dutogliptin to treat type 2 diabetes on April 20, Forest Laboratories said that it is bailing out on the almost $340 million deal, which the companies entered Oct. 23, 2009, to co-develop and commercialize dutogliptin, Phenomix’s home-grown dipeptidyl peptidase-4 (DPP-4) inhibitor.
According to San Diego, Calif.-based Phenomix, Forest said that it will end the partnership due to “business reasons."
"We are disappointed that on the heels of such positive phase 3 data that we will not be moving forward with our collaboration with Forest. We expect to be talking to new prospective partners soon,” said Laura K. Shawver, PhD, CEO of Phenomix.
Under the agreement, Forest made upfront payments to Phenomix of $75 million and was on track to receive royalties on drug sales that took place outside U.S. territories.
According to San Diego, Calif.-based Phenomix, Forest said that it will end the partnership due to “business reasons."
"We are disappointed that on the heels of such positive phase 3 data that we will not be moving forward with our collaboration with Forest. We expect to be talking to new prospective partners soon,” said Laura K. Shawver, PhD, CEO of Phenomix.
Under the agreement, Forest made upfront payments to Phenomix of $75 million and was on track to receive royalties on drug sales that took place outside U.S. territories.