Bristol-Myers Squibb Company (BMS) and Otsuka Pharmaceutical Co., Ltd. has been granted exclusive rights in Japan to develop and commercialise the investigational compound saxagliptin, being studied for the treatment of type 2 diabetes.

Saxagliptin, discovered by Bristol-Myers Squibb, is a dipeptidyl peptidase-4 (DPP-4) inhibitor currently in phase III development in the United States and Europe.

Terms of the agreement include an upfront payment by Otsuka to Bristol-Myers Squibb. Bristol-Myers Squibb will receive milestone payments based on certain regulatory events, as well as sales-based payments following regulatory approval of saxagliptin in Japan. Bristol-Myers Squibb also retains rights to co-promote saxagliptin with Otsuka in Japan. Under the licensing agreement, Otsuka will be responsible for all development costs in Japan.

"Bristol-Myers Squibb is focused on the research and development of therapies for serious diseases, and this agreement is part of our ongoing effort to provide new options to diabetes patients," said Lamberto Andreotti, executive vice president and president, Worldwide Pharmaceuticals, Bristol-Myers Squibb. "Our collaboration with Otsuka on the antipsychotic agent Abilify (aripiprazole) has been very successful, and we are pleased to expand our relationship to include saxagliptin."
"Otsuka has endeavored to contribute to better health worldwide through innovative pharmaceutical products that address unmet medical needs. Our antipsychotic agent Abilify has provided us with an opportunity to work closely with Bristol-Myers Squibb, and we are pleased to enhance this partnership and take on responsibility for the development and commercialization of saxagliptin in Japan," said Tatsuo Higuchi, president and representative director, Otsuka Pharmaceutical Co, Ltd. "I hope this compound will provide a new option to patients suffering from diabetes in Japan."

Saxagliptin is a dipeptidyl peptidase-4 (DPP-4) inhibitor, a new class of diabetes medicines that work by increasing and prolonging the action of natural hormones in the body called incretins. Incretins decrease blood sugar by increasing consumption of sugar by the body, mainly through increasing insulin production in the pancreas, and by reducing production of sugar by the liver.