October 23, 2008

Cellartis, Novo Nordisk and Lund University enter into a collaboration to develop insulin-producing cells from stem cells for the treatment of diabetes

Novo Nordisk A/S, a world leader in diabetes care, Cellartis AB, a forefront stem cell biotechnology company, and Lund University Stem Cell Center today signed a collaborative research agreement for the development of insulin-producing cells from human stem cells. The collaboration aims to develop a cell therapy for the treatment of insulin-dependent diabetes and, in the longer term, a cure for diabetes.

Under the terms of the agreement Novo Nordisk acquires the exclusive rights to further develop and commercialise potential products for the treatment of diabetes, while Cellartis acquires the exclusive rights to further develop and commercialise certain other products resulting from the technologies developed under the collaboration. The collaborative agreement builds on a long-standing research collaboration between Cellartis, Professor Henrik Semb and Hagedorn Research Institute, Novo Nordisk’s basic research centre in Denmark. To date, the collaboration between the three parties has focused on understanding how the formation of insulin-producing cells during embryonic development can be mimicked by directing stem cells in culture. The collaborative agreement now takes these developmental and stem cell biology research activities a step further. The aim is to generate new knowledge about how to ‘program’ stem cells to turn into insulin-producing beta cells that can be used for the treatment of diabetes.

Cellartis will receive a technology access fee as well as potential development and sales milestones of more than 100 million euros. If a product is successfully commercialised, Cellartis will receive royalties on worldwide sales of any diabetes care product developed under the collaboration. In addition, Cellartis and Professor Henrik Semb will receive financial funding from Novo Nordisk for the joint research programme. Further financial terms of the agreement will not be disclosed.

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