Phenomix Corporation and Chiesi Farmaceutici have entered into a definitive agreement to develop and commercialize dutogliptin (PHX1149) in Europe and additional territories including Brazil, Russia and all other members of the Commonwealth of Independent States (CIS), Turkey and Northern Africa. Dutogliptin is Phenomix’ proprietary orally administered, small molecule dipeptidyl-peptidase-4 (DPP-4) inhibitor currently undergoing phase-3 clinical development in Type-2 diabetes mellitus.

Under the terms of the agreement, Chiesi will provide Phenomix with up to US$ 28 million in near-term cash and equity payments and up to US$ 163 million in total payments upon completion of certain development, regulatory and commercialization milestones. Phenomix will also be eligible for royalties on dutogliptin sales. Chiesi will be responsible for product development, regulatory approval and commercialization in its territories.

In October 2008, Phenomix and Forest Laboratories entered into a collaboration to co-develop and co-promote dutogliptin in the United States. Forest also has exclusive rights to develop and commercialize dutogliptin in Canada and Mexico.

"I am very pleased to be collaborating with Chiesi, an established pharmaceutical company with the commercial resources and dedication to make dutogliptin a success in Europe, Brazil, the CIS, Turkey and Northern Africa,” said Laura Shawver, CEO of Phenomix Corporation. “Chiesi has a proven track record of development and commercial expertise in the primary care and cardiometabolic space and has the capabilities to bring dutogliptin to a much broader patient population."

"Diabetes is a growing global problem. DPP-4 inhibitors offer a breakthrough in this therapeutic area and dutogliptin offers an opportunity for Chiesi to address an extreme unmet medical need. Dutogliptin is the cornerstone of our growing cardiometabolic franchise and marks our commitment to make innovative treatments available to patients with Type-2 diabetes. We are excited to team-up with Phenomix to develop and commercialize dutogliptin to help the millions of patients in Europe and elsewhere who suffer with this disease,” said Alberto Chiesi, chairman and CEO of Chiesi.

Dutogliptin is a small molecule inhibitor of the enzyme DPP-4. These inhibitors prevent DPP-4 from breaking down the incretin hormone glucagon-like peptide 1 (GLP-1), thereby increasing the levels of this hormone in the digestive tract and the blood.

Phenomix is a biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule product candidates directed toward clinically validated targets in significant therapeutic markets.

The Chiesi Group is a research-focused international company developing added-value innovative pharmaceutical solutions to improve the quality of human life.