New Novo deal a boost for Merrion

IRISH drug development company Merrion Pharmaceuticals has announced a new collaboration agreement with Danish healthcare firm, Novo Nordisk, that will evaluate the capabilities of Merrion’s GIPET technology to improve the delivery of an unnamed compound.

The latest deal between the companies gives Novo the option to enter into a further licensing agreement for the GIPET technology (which is aimed at improving the absorption of drugs) and gives the Danes a warrant to acquire ordinary shares, in Merrion, worth up to €1.5m at Tuesday’s closing share price of €2.73.

Exercising the option could result in Novo owning a 5% share in the Dublin-headquartered company.

Yesterday’s announcement builds on recent momentum, in terms of collaborations, for Merrion — this being the third such tie-in announced in the past month; while it is hopeful of striking a licence partnership deal by the middle of next year for its chief in-trial drug, Orazol — which was recently upgraded, in terms of recommended treatment, from bone metastases to early stage breast cancer.

Such activity, according to Ian Hunter of Goodbody Stockbrokers demonstrates “that the company’s proprietary drug delivery platform is gaining traction and attracting attention from a growing audience within the sector.”

Meanwhile, Elan has proposed updated product labelling for its multiple sclerosis drug Tysabri.