Altus Pharmaceuticals has reacquired development and commercialization rights to ALTU-135 from Dr. Falk Pharma, terminating their development and commercialization collaboration in Europe and countries of the former Soviet Union, Israel and Egypt. Altus’ enzyme combination, ALTU-135, is designed to improve fat, protein and carbohydrate absorption in pancreatic insufficient individuals, including cystic fibrosis patients.

Under the agreement, Altus regains control of all of the assets resulting from the collaboration. Dr. Falk Pharma has agreed to transfer the orphan designation they received from the EMEA in July 2004. In exchange, Altus will pay Dr. Falk Pharma $16 million during the next three years.

“We believe that this agreement with Dr. Falk Pharma is in the best interest of our company,” stated Sheldon Berkle, president and chief executive officer of Altus. “Altus now has the freedom to evaluate multiple strategic options for worldwide commercialization, including retaining full commercial rights worldwide or seeking a new commercial collaboration, with the ultimate goal of maximizing the value of our ALTU-135 assets.”

The two companies had entered into a development, commercialization and marketing agreement for ALTU-135 in December 2002, under which, Altus granted Dr. Falk exclusive development and commercialization rights to ALTU-135 for the treatment of symptoms caused by exocrine pancreatic insufficiency. Under the agreement, Altus has received upfront and milestone payments from Dr. Falk totaling $14.7 million.