Ortho-McNeil Pharmaceutical, Inc. Ditches $625 Million Diabetes Drug Pact with Diamyd Medical AB

Published: Jun 02, 2011

Diamyd Medical AB (STO:DIAMB)(Pink Sheets:DMYDY) announces it has regained control of the diabetes therapy Diamyd® following Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI) election to terminate the agreement the two companies signed in June 2010 to develop and commercialize Diamyd®.

In June 2010, Diamyd Medical AB and Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI), a Johnson & Johnson company, signed an agreement to develop and commercialize the GAD65-based therapy Diamyd®, for the treatment and prevention of type 1 diabetes and associated conditions. Under the agreement Diamyd Medical received a non-refundable upfront payment of USD 45 million and the parties began sharing the costs for the development program equally. Following termination of the agreement by OMJPI all rights regarding Diamyd® and the active substance GAD65 are returned to Diamyd Medical.

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