Nps Pharmaceuticals And Kirin Pharmaceutical Division Sign Agreement For $25 Million To Collaborate On Hyperparathyroidism Drug

Business Wire, July 10, 1995

SALT LAKE CITY,--(BUSINESS WIRE)--July 10, 1995--NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) announced today that it has concluded a five-year agreement with the Pharmaceutical Division of Kirin Brewery Company, Limited, of Tokyo, to develop and commercialize NPS's Norcalcin(TM) and other compounds for the treatment of hyperparathyroidism (HPT), in Japan and certain other parts of Asia. NPS is currently conducting phase I/II clinical trials with Norcalcin in the U.S.

Under the terms of the June 30, 1995 agreement, NPS will receive from Kirin up to $25 million in license fees, research support, and milestone payments in exchange for exclusive rights to develop and sell Norcalcin and certain other compounds for the treatment of HPT in Japan, China, Korea, and Taiwan. Kirin will pay to NPS an initial license fee of $5 million and first year research payments of $2 million, and is to pay another $5 million in research support over the next four years upon continuation of the agreement. The balance of $13 million will be payable to NPS upon achievement of specific development milestones in the U.S. and Japan. Both companies will commit significant scientific resources to a collaborative research program around NPS's parathyroid calcium receptor technology. Kirin is required to pay all costs of developing and commercializing products within its territory and will pay royalties to NPS on product sales.

HPT is an age-related disorder which causes excessive secretion of parathyroid hormone from the parathyroid gland, leading to elevated serum calcium, called "hypercalcemia". Symptoms may include bone loss, hypertension, gastrointestinal distress, muscle weakness, depression and forgetfulness. The disease, which is typically characterized as either "primary" or "secondary" HPT, is a growing medical concern both as a result of increasing patient numbers and the lack of satisfactory treatments. Approximately 100,000 new patients are diagnosed with primary HPT in the United States each year, with women accounting for over 65% of the patient population. Secondary HPT is most commonly seen as a result of kidney failure, affecting about 80% of dialysis patients.

Hunter Jackson, Ph.D., Chairman and Chief Executive Officer of NPS, commented, "This collaboration is an important step in the NPS strategy of selectively funding major research and development programs through corporate partnerships. Together with our existing alliance with SmithKline Beecham Corporation in osteoporosis, this collaboration significantly enhances our cash position. We are continuing to negotiate with additional potential partners for our HPT program outside of Asia.

"We are particularly pleased to work with Kirin as our partner in Asia. Our interaction leading to this agreement has been extensive on both scientific and commercial levels so the companies know each other well and have already established an excellent relationship. Kirin has extensive technical and marketing experience in the area of renal failure, where secondary hyperparathyroidism is a widespread problem. Kirin and NPS will employ the proprietary NPS calcium receptor-based technology and related NPS compounds in addressing an important medical need," Jackson concluded.

NPS Pharmaceuticals, a development-stage company founded in 1986 and headquartered in Salt Lake City, combines a novel focus on ion-related drug targets with the discovery of drug leads from non-traditional natural product sources. The Company's current areas of activity include hyperparathyroidism, osteoporosis, and central nervous system disorders, including stroke.

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