posted
This stock came across my screener and it looked as if it may be a positive play. Novo Nordisk makes one of the most popular insulins currently (novolog) and it looks like they are sponsoring Ardigm who is making an inhalable insulin which im sure will be hot cause who likes to stick themselves with needles! anyways stock rocketed 30% today and AFTER the bell rang they released this PR. What you guys think?? i didnt buy today but want to at market open tomarrow if it doesnt gap up too much...
Restructured deal boosts Aradigm Novo Nordisk committed to inhaled insulin candidate
By Val Brickates Kennedy, MarketWatch Last Update: 7/5/2006 4:41:00 PM Data provided by
BOSTON (MarketWatch) -- Aradigm Corp. shares rallied Wednesday as the developer of drug-delivery systems negotiated a restructured deal with Danish drugmaker Novo Nordisk for their inhaled insulin product candidate.
The shares closed up almost 30% at $1.80, after hitting an earlier high of $1.90.
In a release, Hayward, Calif.-based Aradigm (ARDM) said it will receive a cash infusion of $27.5 million from Novo Nordisk (NVO), a leading maker of diabetes-care products.
In particular, Novo Nordisk will pay Aradigm $12 million to assume ownership of a certain group of patents related to the inhaled insulin product, which is in Phase III clinical testing. Aradigm, in turn, will receive royalties on any future inhaled insulin products sold by Novo Nordisk.
Aradigm, in turn, agreed to a 1% reduction in its average royalty rate on AERx iDMS, its lead inhaled insulin product, in exchange for $8 million. This transaction will result in Aradigm having an average royalty rate of 5% or higher five years after the product's launch.
In addition, Novo Nordisk has paid Aradigm $7.5 million in the form of a 5%, eight-year note. The note is secured by future royalty payments.
"Together with this cash infusion, Aradigm now has more than $35 million in cash which will advance our AERx respiratory-focused programs including our self-initiated liposomal ciprofloxacin program for the treatment of cystic fibrosis-related infections," said Bryan Lawlis, Aradigm's chief executive, in a statement.
"It is our intent to balance both partnered and self-initiated AERx opportunities with the goal of full ownership of products in the future," Lawlis added.
Earlier this year, the Food and Drug Administration approved the U.S.'s first inhaled insulin product, Exubera. Co-developed by Pfizer (PFE) and Nektar Therapeutics (NKTR), it will be launched mid-July.
Diabetes-drug heavyweight Eli Lilly & Co. (LLY) and partner Alkermes Inc. (ALKS) are also working on an inhaled insulin product, as is Mannkind Corp. (MNKD)
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