The Board of Dechra Pharmaceuticals plc (LON:DPH) today announced the signing of a licensing and supply agreement with Akston Biosciences Corporation for a patent pending, long acting protein for the treatment of diabetes in dogs.
Following an initial upfront payment of US$2.0 million, there are subsequent milestone payments totalling US$14.0 million due on the achievement of major milestones in the development process, which should be completed within five years. Furthermore, Dechra anticipates product development spend to increase by approximately £20.0 million spread over the next four years in order to achieve marketing authorisations in the United States and European Union and subsequently other global markets.
Diabetes is currently treated by daily injections; however, proof of concept studies conducted to date indicate that a single injection of this long acting protein will have a duration of seven days, providing a clear advantage over current treatments to both the dog owner and the dog’s welfare. Under the terms of the agreement Dechra also has the option to license a version for cats, which will be subject to additional milestones.
Dechra’s Chief Executive Officer, Ian Page said:
“We are delighted to have secured this major development opportunity which will further enhance Dechra’s position as world leaders in veterinary endocrinology. Once approved this will become the most significant product in our portfolio as we continue to build our portfolio of novel drugs”.
Akston’s Chief Executive Officer, Todd Zion said:
“We are pleased to have found a strong partner in Dechra to co-develop and commercialise our novel ultra-long acting insulin technology. Once approved, this will become a key asset in our platform of engineered insulin products”.
Akston were advised on the transaction by Oriole Advisors.