Amgen and NPS sign letter of intent to collaborate on hyperparathyroidism drug.THOUSAND OAKS, Calif.--(BUSINESS WIRE)--Dec. 28, 1995--Amgen (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMGN) and NPS NPS National Park Service NPS Naval Postgraduate School NPS Net Promoter Score (customer management) NPS Non-Point Source pollution NPS Native Plant Society NPS Norfolk Public Schools (Virginia) Pharmaceuticals (NASDAQ:NPSP NPSP New Parent Support Program NPSP National Polio Surveillance Project (India) NPSP Native Plant Stewardship Program (Washington Native Plant Society) NPSP Nonparametric Statistical Package ) Thursday announced that they have signed a binding letter of intent to collaborate in developing and commercializing NPS's Norcalcin (TM) and other compounds based on NPS's proprietary calcium receptor technology for the treatment of hyperparathyroidism Hyperparathyroidism Definition Parathyroid glands are four pea-sized glands located just behind the thyroid gland in the front of the neck. The function of parathyroid glands is to produce a hormone called parathyroid hormone (parathormone), which helps (HPT HPT Human Performance Technology HPT Hyperparathyroidism HPT Heartland Poker Tour HPT Home Pregnancy Test HPT High Pressure Turbine HPT Host Print Transform HPT High-Performance Team HPT high-payoff target (US DoD) ). One form of HPT is commonly seen as a result of kidney failure kidney failure or renal failure Partial or complete loss of kidney function. Acute failure causes reduced urine output and blood chemical imbalance, including uremia. Most patients recover within six weeks. , affecting as many as 80 percent of dialysis patients. NPS will receive from Amgen an initial license fee of $10 million, potential additional milestone payments totaling $26 million, plus royalties on product sales. In addition, Amgen will purchase 1 million shares of NPS stock for $7.5 million, priced at the market price of the company's stock in November when the stock purchase negotiations were initiated. Amgen will receive exclusive worldwide rights (excluding Japan, China, Korea and Taiwan) to develop and sell Norcalcin, which is in Phase I/II clinical trials, and certain other compounds for the treatment of HPT. Both parties will participate in development, but Amgen will pay all costs of developing and commercializing products. HPT is a disorder which causes excessive secretion of parathyroid hormone parathyroid hormone or parathormone, a hormone secreted by the parathyroid glands that regulates the metabolism of calcium and phosphate in the body. from the parathyroid parathyroid /par·a·thy·roid/ (-thi´roid) 1. situated beside the thyroid gland. 2. see under gland. par·a·thy·roid adj. 1. gland, leading to elevated serum calcium, called hypercalcemia Hypercalcemia Definition Hypercalcemia is an abnormally high level of calcium in the blood, usually more than 10.5 milligrams per deciliter of blood. . Symptoms may include bone loss, hypertension, gastrointestinal distress, muscle weakness, depression and forgetfulness Forgetfulness See also Carelessness. Absent-Minded Beggar, The ballad of forgetful soldiers who fought in the Boer War. [Br. Lit.: “The Absent-Minded Beg-gars” in Payton, 3] absent-minded professor . The disorder, which is typically characterized as being either primary or secondary HPT, is a growing medical concern both because of the growing incidence and the lack of satisfactory treatment. There are approximately 250,000 cases of primary HPT in the United States, about two-thirds of them women. "This late-stage collaboration is significant both in its potential to produce a successful treatment of this currently unmet medical need and because Norcalcin would strengthen Amgen's existing commitment to the renal community in the United States and provide an opportunity to serve a new group of patients in most of the rest of the world," said Gordon Binder, Amgen's chairman and chief executive officer. "The $10 million license fee will reduce earnings in the fourth quarter by $0.02 per share," Binder added. Amgen already has a strong presence in the renal community, having discovered and developed EPOGEN (R) (Epoetin alfa) to combat the anemia experienced by chronic renal failure chronic renal failure Chronic kidney failure Nephrology A slow decline in renal function, which may be 2º to chronic HTN, DM, CHF, SLE, or sickle cell anemia and, if extreme, leads to ESRD, mandating kidney dialysis; an abrupt decline in renal function may be patients on dialysis. Sales in 1994 were $721 million. "Amgen is a particularly appropriate partner for the development of Norcalcin because of its extremely strong presence in the renal field and its growing interest in endocrinology," said Hunter Jackson, Ph.D., chairman, president and chief executive officer of NPS. "In addition, Amgen has previously worked with our corporate partner for Norcalcin in Asia, the Pharmaceutical Division of Kirin Brewery Ltd. This combination of corporate partners provides the financial resources and outstanding development capabilities to expedite the thorough worldwide development of Norcalcin. NPS will have approximately $25 million in cash after closing the agreement with Amgen. "We will also have potential milestone payments of $39 million plus royalties from Amgen and Kirin, the licensee for compounds to treat HPT in other markets. In addition, a third partner, SmithKline Beecham, continues to fund our osteoporosis research program. As a result of these collaborations, NPS has significantly reduced its cash burn while expanding and accelerating its capabilities for product development," Jackson said. The transaction is subject to clearance under the Hart-Scott-Rodino Anti-trust Improvements Act and other standard conditions. Amgen is a global biotechnology company that discovers, develops, manufactures and markets human therapeutics based on advanced cellular and molecular biology. NPS Pharmaceuticals, a development-stage company founded in 1986, with headquarters in Salt Lake City, is dedicated to the discovery and development of small molecule drugs that target regulators of ions that, in turn, control important cell functions underlying a variety of major diseases. The company is applying its technology and research to hyperparathyroidism, osteoporosis and central nervous system disorders Nervous system disorders A satisfactory classification of diseases of the nervous system should include not only the type of reaction (congenital malformation, infection, trauma, neoplasm, vascular diseases, and degenerative, metabolic, toxic, or deficiency , including chronic pain and brain damage from stroke. CONTACT: Amgen, Thousand Oaks David Kaye, 805/447-6692 (media) Sarah H. Crampton, 805/447-1659 (investors) or NPS Pharmaceuticals, Salt Lake City Bob Merrell, 801/583-4939 |
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