Metabolex inks deal with J&J for diabetes treatment
HAYWARD, Calif. Metabolex has entered an agreement to discover and develop Type 2 diabetes drugs with a subsidiary of Johnson & Johnson, Metabolex said Tuesday.
Under the agreement, Ortho-McNeil-Janssen Pharmaceuticals will receive an exclusive worldwide license to develop, manufacture and commercialize several Metabolex compounds currently in preclinical development. Metabolex will receive an upfront payment and be eligible for potential milestones of up to $330 million, as well as royalties.
“We look forward to this partnership and to maximizing the significant potential of Metabolex’s programs to bring first-in-class therapies to patients with Type 2 diabetes and other disorders,” Metabolex CEO Harold Van Wart said.
A1c readings may not be accurate for some ethnic groups, study finds
NEW YORK The hemoglobin A1c test may not provide accurate results for elderly Asians, according to published reports about a new study.
The American Diabetes Association said the test works when doctors use an A1c reading of 6.5% to indicate diabetes, but the study, conducted in Singapore, found that the cutoff often misses the disease in older Asians. The study was conducted on participants between the ages of 20 and 93 years.
The study’s findings were scheduled to be presented Sunday at the Endocrine Society’s annual meeting in San Diego, according to the reports.
Valeant, Biovail to merge
TORONTO U.S. drug maker Valeant and Canadian drug maker Biovail will merge, the two companies said Monday.
The combined company will carry the name Valeant Pharmaceuticals International but will have its headquarters in Mississauga, Ontario. Valeant is currently based in Aliso Viejo, Calif.
Under the agreement, Valeant stockholders will receive $16.77 per share immediately before the merger’s closing and, after its closing, 1.78 shares of Biovail stock for every share of Valeant stock they own. After the merger closes, Biovail shareholders will own around 50.5% and Valeant shareholders will own 49.5% of the combined company.
Biovail is known mostly for such specialty drugs as the antidepressant Wellbutrin XL (bupropion), while Valeant’s range of branded and branded generic drugs include the acne treatment Acanya Gel (clindamycin phosphate and benzoyl peroxide).
Valeant CEO J. Michael Pearson will reside in Barbados as the new CEO, while Biovail CEO Bill Wells will be nonexecutive chairman. The company’s 11-member board of directors will include five representatives from Biovail, five from Valeant and one independent Canadian resident director.
“This compelling combination will create tremendous value for stockholders of both companies as our business benefits from cost savings, greater scale, efficiencies from extending Biovail’s corporate structure and enhanced financial strength and flexibility,” Pearson said.