DeveloGen sells its diabetes drug to Cial Biotechnologies
Goettingen, Germany/Tel-Aviv, Israel — DeveloGen Israel Limited (“DeveloGen”), a wholly owned subsidiary of DeveloGen AG, and Andromeda Biotech Ltd. (“Andromeda”), a newly formed wholly owned subsidiary of Clal Biotechnology Industries Ltd. (“Clal”), today announced that DeveloGen and Andromeda have signed a term sheet for an asset purchase agreement for DeveloGen’s DiaPep277® program for the treatment of type 1 diabetes.
Under the terms of the agreement, which is subject to certain closing conditions, DeveloGen will transfer the rights in DiaPep277 to Andromeda. DeveloGen will receive royalties upon commercialisation of DiaPep277 products and Andromeda will have further monetary obligations towards DeveloGen upon the successful completion of key developmental and regulatory milestones prior to commercialisation. It is intended that Andromeda will continue the ongoing phase III study for DiaPep277. The final agreement is expected to be announced within the next 60 days.
“We are very pleased to have Clal as our partner for DiaPep277. Clal has a great track record of backing companies with innovative approaches for the treatment of important diseases,” said Carsten Dehning, Chief Financial Officer of DeveloGen. “This partnership is an important step in the ongoing strategic review and refocusing of DeveloGen”.
Ruben Krupik, CEO of Clal said: “Type 1 diabetes is a very significant disease that is estimated to affect as many as 3 million people in the US alone. We believe DiaPep277 offers a novel and highly innovative approach to treating this disease which has a major impact on patients’ lives and many long-term complications.”