Merrion up 25% on insulin study

Shares in Irish drug development company Merrion Pharmaceuticals jumped by 25% yesterday on the back of news that the firm has moved a step closer to playing a pivotal role in transforming diabetes medication.

The Dublin-headquartered firm announced yesterday that its main strategic partner, Danish healthcare company, Novo Nordisk has successfully completed an early-stage study into an oral insulin treatment being worked on by the two companies.

If successful the treatment — which currently has the in-trial codename of ‘NN1954’ — would be the first of its kind commercially available.

Merrion last year froze its own drug development programme and repositioned itself as a technology/intellectual property provider to other firms.

Its patented GIPET technology goes into the making of drugs delivered in tablet, capsule or injection form.

GIPET has been used in the formulation of ‘NN1954’ and Merrion is in line to receive payments upon the product meeting certain performance goals during its development, regulatory and commercial sales phases, as well as future royalties.

The treatment is still a long way from commericalisation, as the clinical trial reported yesterday is the first of three phases of human testing. The successful single-dose Phase 1 trial — which ran from last May to October and involved 80 people — was to test for safety, tolerability and effects on blood sugar levels.

Nevertheless, Merrion’s chairman, Michael Donnelly called the news “another step towards improving the management options for diabetes”.

Insulin is still only available to diabetes sufferers via injection.

“This type of ascending dose trial is a critical stage in the development of a new therapeutic. We continue to be encouraged with the commitment of Novo Nordisk to the incorporation of Merrion’s GIPET technology in the plan to bring an oral insulin tablet to the market,” Mr Donnelly added.

Merrion’s share price was up by 25% to 60c in Dublin yesterday.