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Denufosol tetrasodium

Merck & Co., Inc.

Drug Names(s): INS37217 Respiratory

Description: Denufosol tetrasodium is a selective P2Y2 agonist designed to enhance the lung's innate mucosal hydration and mucociliary clearance mechanisms by activating an alternative ion channel that acts in the same way as the defective ion channel in moving salt and water to the surface of the airways.

Deal Structure: In October 2002, Inspire entered into a study funding agreement with Cystic Fibrosis Foundation Therapeutics (CFFT), a non-profit drug development affiliate of the Cystic Fibrosis Foundation, for the funding of one Phase II clinical trial for denufosol for the treatment of cystic fibrosis. Under the agreement, the CFFT provided the majority of funding of external costs for one Phase II clinical trial of denufosol, which was completed in April 2004, in exchange for post-commercialization development and sales milestone payments. If denufosol ultimately receives FDA approval for the treatment of cystic fibrosis, Inspire would be obligated to pay a development milestone to the CFFT, calculated as a multiple of the clinical trial costs incurred by the CFFT. In addition, Inspire would be obligated to pay a sales milestone if the product candidate achieves a specified aggregate sales volume in the first five years following product approval.

As of Inspire's 10-K for the year ended...See full deal structure in Biomedtracker

Partners: Cystic Fibrosis Foundation Therapeutics, Inc.

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