Amylin Corp. on Tuesday announced a collaboration with GlaxoInc. to develop new diabetes therapies in an agreement thatAmylin Chairman Howard Greene called "a true jointdevelopment deal."

Instead of assigning royalties in exchange for equity ormilestone payments, the agreement calls for the companies todevote essentially equal resources to the research effort andco-promote any resulting products. It is a model for futurebiotech collaborations, Greene told BioWorld, especially withthe lucrative example set by Amgen Inc. in marketing its ownproducts.

"It makes more sense to raise cash from investors and retainimportant business rights," Greene said.

The venture will seek therapeutics for diabetes based on thepancreatic hormone amylin. Glaxo Inc. of Research TrianglePark, N.C., and San Diego-based Amylin will sell any resultingproduct under a single brand name using both companies' salesforces.

The companies will share "a certain basic amount of profits,"said Greene, and will split remaining profits "according to whosells what." Other financial terms were not disclosed.

As part of the agreement, Richard Sykes, research anddevelopment director for Glaxo Inc.'s parent company, GlaxoHoldings plc of London, will join Amylin's board of directors.

"We have decided to make amylin physiology a central focus ofour diabetes research commitment," said Sykes.

Amylin has developed a transgenic rat containing the gene foramylin, which the company believes is the culprit in Type II, oradult-onset, diabetes. The rat produces human amylin in itspancreas.

The company believes an excess of amylin leads to obesity,deposits of amyloid in the pancreas, and the insulin resistancethat characterizes Type II diabetes. Under the agreement,Glaxo and Amylin intend to investigate amylin blockers aspotential therapeutics.

Type I diabetics, who develop the disease early in life, produceneither insulin nor amylin, which appears to modulate insulin'sactions. Amylin Corp. also intends to make an insulinformulation that contains amylin to avoid the risk of insulin-triggered low blood sugar.

Amylin's patent on its namesake hormone has yet to issue,Greene said.

-- Roberta Friedman, Ph.D. Special to BioWorld

(c) 1997 American Health Consultants. All rights reserved.