Diabetes drug alogliptin, which Furiex Pharmaceuticals (NASDAQ:FURX) licensed to drug partner Takeda Pharmaceutical Company Ltd., has received European marketing authorization setting up Furiex for a $10 million milestone payment.

Furiex confirmed Tuesday that Takeda had received European approval for the drug, which will be marketed under the name Vipidia. The drug is approved for the treatment of type 2 diabetes patients whose condition is not controlled on existing therapies. The company also has approval for fixed-dose combination Vipdomet, a combination of alogliptin and metformin; and Incresync, a combination of alogliptin and pioglitazone.

The alogliptin partnership between Morrisville-based Furiex and Japanese pharma company Takeda dates to 2005, when Furiex was the drug development unit of Wilmington clinical research organization PPD. PPD licensed to Takeda the development and commercialization rights to a compound that helps manage blood glucose levels That compound became the drug alogliptin. It was first approved in Japan in 2010, where it is marketed under the name Nesina. Furiex receives royalties from Takeda’s Nesina sales in Japan. 

Besides the $10 million milestone due to Furiex for alogliptin’s European marketing authorization, Furiex is also eligible for tiered royalties on sales in the European Union along with potential sales-based milestones.

“We are pleased Takeda has received marketing authorizations in Europe for these three new type 2 diabetes therapies,” June Almenoff, Furiex president and chief medical officer said in a statement. “With rising incidence of type 2 diabetes in Europe, these approvals provide clinicians with what we believe are important options to tailor treatment to meet the individual needs of this growing patient population.”

The three type 2 diabetes therapies received Food and Drug Administration approval in January, triggering a $25 million milestone payment for Furiex. Alogliptin is available in the United States under the name Nesina. The alogliptin metformin combination is sold under the name Kazano; the alogliptin and pioglitazone combination drug is sold under the name Oseni.

Besides the U.S. and European approvals this year, Alogliptin also received approval in July from China’s regulatory officials.