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Novartis AG

Drug Names(s): synthetic human calcitonin

Description: Calcitonin directly inhibits osteoclasts, binding to plasma-membrane receptors and increasing intracellular cyclic adenosine monophosphate (cAMP), as well as interfering with the membrane transport mechanisms of phosphate and calcium. Calcitonin lowers serum calcium concentrations by inhibiting bone resorption with subsequent decreases in elevated serum alkaline phosphatase concentrations and urinary hydroxyproline levels. The release of calcium and phosphate from bone is reduced, and the extent of collagen breakdown is decreased.

Deal Structure: In April 2004, Unigene signed licensing and clinical supply agreements with Novartis Pharma AG to provide for the recombinant production of salmon calcitonin, the active ingredient used in various products for the treatment of osteoporosis. Under the terms of this license, Unigene is eligible to receive a total of $18.7 million in upfront and milestone payments and bulk calcitonin sales. In addition, Unigene will receive royalties on sales of any current or future Novartis products that contain calcitonin using Unigenes process. The license agreement grants Novartis a worldwide license to produce recombinant calcitonin under Unigenes patented process for manufacturing recombinant peptides.

Partners: Unigene Laboratories, Inc.

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