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GEN News Highlights : Aug 28, 2009

Novartis to Further Orexo’s Mid-Stage GERD Treatment

Company will fund all future development and pay Orexo success-based fees and royalties.

Novartis has taken on Orexo’s Phase II/III GERD therapeutic candidate, OX17, agreeing to pay all future development expenses. Novartis gains an exclusive license to all related intellectual property and commercialization rights.

Orexo is entitled to milestone fees related to development and sales targets being reached. Additionally, it will receive royalties on future sales of the product.

By combining two well-known substances that inhibit acid secretion in the stomach with different time to onset of effect—an H2-receptor blocker and a proton-pump inhibitor (PPI)—OX17 provides both a prompt and prolonged effect, according to Orexa.