Local Tech Wire
HIGH POINT, N.C. – could earn more than $1 billion in a compounding licensing deal with Forest Laboratories Holdings (NYSE: FRX).
The companies are partnering to develop possible treatments for diabetes.
TransTech receives a $50 million upfront payment as part of the deal.
Future milestone and other payments could reach as much as $1.105 billion, the companies announced.
The license focuses on development and commercialization of compounds discovered and developed by TransTech. The fouc is on so-called Glucokinase Activators (GKAs) that lower glucose levels. Glucokinase is an enzyme localized in the pancreas and in the liver.
If treatments are developed successfully, TransTech would receive e royalties on sales.
Forest is responsible for development and commercialization costs.
“We selected Forest because of its highly dedicated team and leadership that bring a wealth of experience and resources to our compounds,” said TransTech Chairman and Chief Executive Officer Adan Mjalli. He also is the firm’s founder. “Forest is driven by entrepreneurial spirit, innovation and dedication.”
Mjalli noted that the compounds have “the potential to be a major therapeutic advance in the treatment of diabetes. Our GKAs are specifically selected to improve glycemic control without exerting pressure on the pancreas to produce insulin. We are encouraged by early data suggesting potential additional decreases in serum lipids which tend to be elevated in diabetic patients.”
TransTech has three compounds in Phase I clinical trial and one ready for Phase II trial.
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