AstraZeneca links with biotech firm to develop obesity, diabetes drugs
By GARY HABER, The News Journal Posted Wednesday, January 31, 2007 at 11:21 am
AstraZeneca will partner with a New Jersey biotechnology company to develop drugs for combating obesity and diabetes, the companies said today.
Under the terms of the licensing and research deal, Palatin Technologies of Cranbrook, N.J., will receive an upfront payment of $10 million, and could receive as much as $300 million if development and sales goals are met.
“This agreement supports our commitment to discovering and developing innovative medicines in the diabetes and obesity areas,” Jan Lundberg, AstraZeneca’s executive vice president for discovery, said in a statement announcing the deal. The drug maker, whose U.S. headquarters is in Fairfax, is making diabetes and obesity research a priority, Lundberg said.
The collaboration with Palatin follows AstraZeneca's announcement on Jan. 11 that it will collaborate with Bristol-Myers Squibb on developing a pair of drugs to treat Type 2 diabetes.
Obesity, a condition that affects almost one-third of adult Americans, is one factor that can lead to Type 2 diabetes.
Shares of Palatin jumped 23 percent, or 48 cents, to $2.53, in mid-morning trading on the American Stock Exchange trading. AstraZeneca’s U.S. shares were up 4 cents, to $55.59, on the New York Stock Exchange.
AstraZeneca will report its fourth-quarter and year-end 2006 results on Thursday.
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