Forest also agreed to $265 million in milestones.
Phenomix is collaborating with Forest Laboratories for the development of its Phase III candidate for type 2 diabetes mellitus in North America. Forest paid $75 million upfront for exclusive rights in Canada and Mexico and joint U.S. rights to commercialize dutogliptin .
Phenomix could receive up to $265 million in development and commercialization milestones for this orally administered, small molecule dipeptidyl-peptidase-4 in the U.S. Phenomix and Forest will equally share expenses for development and commercialization as well as profits in the U.S. The parties will copromote the drug in the U.S., with Phenomix promoting dutogliptin to endocrinologists and diabetologists and Forest promoting to primary care and specialty physicians.
Phenomix retains development and commercialization rights to the product outside of North America. The company will pay Forest a royalty on net sales in these territories and will receive royalties from Forest on sales in Canada and Mexico. Phenomix will also be able to use jointly funded trial data from Canada and Mexico.
