Andromeda Biotech Acquires Rights to Teva Diabetes DrugBy
Andromeda Biotech Ltd. has formed an agreement with Teva Pharmaceutical Industries Ltd. for the acquisition of Teva’s rights for Andromeda’s drug, DiaPep277Â® for the treatment of Type 1 diabetes. According to the agreement, Teva will transfer its rights in DiaPep277Â® and all of its shares in Andromeda to Andromeda, for total consideration of approximately $72 million, payable in installments through future payments based on Andromeda’s revenues or on proceeds payable to its shareholders. Andromeda will ensure that the development program of DiaPep277Â®, currently in a confirmatory Phase III study, will continue according to plan without delays to gain regulatory approval. DiaPep277Â® is a peptide of 24 amino acids derived from the sequence of the human heat shock protein 60 (Hsp60). It was invented by Prof. Irun Cohen and his team at the Weizmann Institute of Science. The peptide acts by modulating the immune system, thus preventing the destruction of pancreatic cells that secrete insulin and preserving their natural function.