Emisphere announces oral PTH license agreement with Novartis

By Elaine Rigoli

Tampa, Fla., March 8 - Emisphere Technologies, Inc. said Novartis has executed its license option for the development and commercialization of an oral parathyroid hormone (PTH) using Emisphere's eligen delivery technology.

Emisphere is eligible for milestone payments totaling up to $30 million, plus royalties on sales of the product, according to a company news release.

"We are very pleased that Novartis has indeed elected to execute its option to develop oral dosage forms of PTH using our technology," Michael M. Goldberg, chairman and chief executive officer, said in a statement.

"The overwhelmingly favorable decision by the court in our litigation with Lilly will now mean that this product can at last move forward with a committed and capable partner."

This license agreement marks the third between the two companies. In 2000, Emisphere and Novartis entered into a license agreement to develop oral salmon calcitonin, and a second agreement followed in 2004 to develop oral human growth hormone, the release said.

The decision to execute the license follows the Jan. 6 federal court decision in Indianapolis favoring Emisphere in its litigation with Eli Lilly and Co., the release said.

The court agreed with Emisphere that Lilly had breached the agreement in multiple areas and that the PTH agreement between Lilly and Emisphere was terminated.

In exchange for the option right, in 2004 Emisphere received from Novartis $10 million in the form of a convertible note. Repayment can be in cash or stock, at Emisphere's option. The stock price will be set at the time of conversion, the release said.

Emisphere, based in Tarrytown, N.Y., is a biopharmaceutical company developing oral delivery of otherwise injectable drugs.

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