Forest inks diabetes deal that could cost up to $1.1B

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TransTech Pharma and Forest Laboratories Holdings Limited, a wholly owned subsidiary of Forest, have entered into a $50 million license agreement to develop and market TransTech Pharma’s liver-selective glucokinase activators (GKAs), glucose lowering compounds that can treat diabetes.

Under the agreement, High Point, N.C.-based TransTech Pharma could receive payments of up to $1.105 billion in payments from Forest for the success of the GKA compounds.

New York City-based Forest will take on development and commercialization costs and will render TransTech Pharma royalties of the compounds global sales. Additionally, the deal will give TransTech Pharma the rights to the Middle East and North Africa while Forest will take on the rest of the market sectors.

According to the companies, the GKA enzyme is located in the pancreas and liver and acts as a sensor to monitor and maintain glucose levels, helping to reduce the risk of hypoglycemia.