Chugai Pharmaceutical Co., Ltd., one of Japan’s leading research-based pharmaceutical companies, and Kowa Company, Ltd. (Kowa), a privately held multinational pharmaceutical company, announced that both companies have agreed to expand the license agreement to include US and EU for Chugai’s original selective SGLT2 inhibitor, currently marketed by Kowa under the brand name “Deberza tablets 20mg” (generic name: tofogliflozin hydrate) with the indication of type 2 diabetes in Japan.

Under this agreement, Kowa will acquire the exclusive rights to develop and market the product, and conduct research, development and marketing activities for the combination drug in the US and EU, while Chugai will be responsible for supplying the drug and active pharmaceutical ingredients (API). Under the terms of this agreement, Chugai will receive an upfront fee, milestone payments and royalty from Kowa.

Deberza is a selective inhibitor of sodium-glucose cotransporter 2 (SGLT2), created by Chugai. It lowers blood glucose by inhibiting glucose reabsorption in the kidney and inducing excretion of excess blood glucose into urine. For overseas development, Chugai and its strategic alliance partner, F. Hoffman-La Roche Ltd. jointly conducted global phase II trial with approximately 400 type 2 diabetes patients in 2009.

Chugai and Kowa hope that Deberza will offer a new treatment option for the treatment of type 2 diabetes and contribute to the patients in the US and EU.

For the Japanese market, Chugai has out-licensed tofogliflozin to Sanofi K.K. in addition to Kowa.