|
Diamyd Medical Outlicenses Gene To Neurologix For Treatment Of Parkinson’s Disease |
|
|
|
07 Aug 2006 |
Announces that it has entered into a non-exclusive license agreement by which Neurologix, Inc., Fort Lee, N.J. (OTCBB: NRGX), obtained rights to use the GAD65 molecule in its development of a therapeutic treatment for Parkinson’s disease.
STOCKHOLM, Sweden | Aug 07, 2006 | Diamyd Medical announces that it has entered into a non-exclusive license agreement by which Neurologix, Inc., Fort Lee, N.J. (OTCBB: NRGX), obtained rights to use the GAD65 molecule in its development of a therapeutic treatment for Parkinson’s disease. Terms of the agreement include a license execution payment of US $500,000, annual fees of US$ 75,000 from year 2008 as well as milestones and royalties on commercial sales.
The news come at an exciting time for Diamyd Medical AB, which will present results of a phase II study with its GAD-based Diamyd™ for Type 1-diabetes later this month.. “This sublicense agreement for Parkinson’s disease demonstrates the broad potential for the GAD65-molecule in diseases of the central nervous system (CNS). And in these diseases its therapeutic mechanism is very different from what it is when treating diabetes,” said Anders Essen-Moller, CEO and President of Diamyd Medical. “Neurologix was first in the world to successfully use GAD-gene therapy in human clinical trials for Parkinson’s disease and we believe that Neurologix is well-positioned to aggressively advance its Parkinson's drug towards market commercialization.”
While GAD65 is a major autoantigen in autoimmune diabetes, it is also an enzyme that converts the excitatory neurotransmittor glutamate to the inhibitory transmittor GABA. In this context GAD65 may come to play an important role not only in diabetes treatment but also in treatments of several CNS-related disease states including but not limited to Parkinson’s disease. Diamyd Medical has a worldwide exclusive license from University of California at Los Angeles for the therapeutic use of the GAD65 gene. It is the use of this gene for Parkinson’s disease that now has been sublicensed to Neurologix.
About 1.5 million people in the U.S have Parkinson’s disease and around 40,000 new patients are diagnosed with the disease every year. The annual direct health care costs are estimated to US $5.6 billion. “If Neurologix’s Parkinson's therapy is successful with annual sales reaching US $500 million or more, the annual royalty streams under the terms of the present non-exclusive sublicense agreement may potentially reach tens of millions of dollars,” concluded Mr. Essen-Moller.
About Neurologix, Inc.
Neurologix, Inc. is a development-stage company which is engaged in the research and development of proprietary treatments for disorders of the brain and central nervous system, primarily utilizing gene therapies. The Company's initial development efforts are focused on gene therapy for treating Parkinson's disease, epilepsy and Huntington's disease. Neurologix's core technology, "NLX," is currently being tested in a Company-sponsored phase I human clinical trial to treat Parkinson's disease.
About Diamyd Medical:
Diamyd Medical is a Life Science company focusing on development of pharmaceuticals for treatment of diabetes and its complications. The most advanced project is the GAD-based therapeutic Diamyd™ for autoimmune diabetes. This candidate drug is currently in phase II clinical trials encompassing both Type 1- and Type 2-diabetes.
Diamyd Medical has outlicensed the GAD65 gene for treatment of Parkinson’s disease to Neurologix, Inc., Fort Lee, New Jersey, and phase I clinical trials are ongoing.
Other projects include gene therapy projects based on the Company’s Nerve Targeted Drug Delivery System (NTDDS). These programs encompass Enkephalin-NP2 and GAD-NG2 gene delivery targeting chronic pain such as pain caused by for example diabetes, but also included are a cancer project and development projects together with third parties. All of these projects are in the preclinical phase.
Diamyd Medical has offices in Stockholm (Sweden) and Pittsburgh (USA) and is registered on the Stockholm Stock Exchange O-list (OMX: DIAM B) and in the USA (ADR Level 1: DMYDY) administered by Bank of New York. See also www.diamyd.com.
SOURCE: Diamyd Medical |
