Emisphere Technologies, Inc. and Novo Nordisk A/S have entered into an exclusive development and license agreement to develop and commercialize oral formulations of Novo Nordisk's proprietary GLP-1 receptor agonists, which have the potential of treating type II diabetes, using Emisphere's eligen technology.

The agreement includes at least $87 million in product development and sales milestone payments to Emisphere, of which $10 million will be the minimum first year payment, as well as royalties on sales. The agreement also provides Novo Nordisk with the option to develop oral formulations of Novo Nordisk compounds other than GLP-1 receptor agonists using Emisphere's proprietary carrier technology. Further financial details of the agreement were not made public.

Under the new agreement, Novo Nordisk is responsible for the development and commercialization of the product candidates. Novo Nordisk and Emisphere have collaborated since 2007 on early-stage pre-clinical research that has preliminarily confirmed the utility of Emisphere's carriers to provide bioavailable oral formulations of GLP-1 receptor agonists.

This partnership with Novo Nordisk is important for Emisphere for several reasons, said Michael V Novinski, president and chief executive officer of Emisphere. First, it couples Emisphere with Novo Nordisk, the worldwide leader in the field of diabetes research. Second, it places our technology with a treatment for diabetes that we hope will be able to improve upon the healthcare of millions of patients with this disease. Finally, it also positions our eligen technology in such a way that helps to bring innovative solutions to the pharmaceutical development arena.

This is an encouraging agreement on a promising technology for oral administration of proteins. It fits very well with Novo Nordisk's strategy within diabetes research, said Peter Kurtzhals, senior vice president, diabetes research unit.

Emisphere's broad-based drug delivery technology platform, known as the eligen technology, uses proprietary, synthetic chemical compounds, known as Emisphere delivery agents, sometimes called carriers. Emisphere's eligen technology makes it possible to deliver a therapeutic molecule without altering its chemical form or biological integrity.

Emisphere Technologies focuses on a unique and improved delivery of therapeutic molecules and pharmaceutical compounds using its eligen Technology. Some of these molecules or compounds can only be given by injection; when combined with our technology; convenient oral versions may be safe, effective and provide significant advantages.