Merrion Pharmaceuticals and Novo Nordisk have signed a collaboration and option agreement to evaluate the ability of Merrion’s GIPET technology to boost the oral bioavailability of an undisclosed compound. Following the feasibility studies, Novo Nordisk will have the option to license Merrion’s GIPET technology.

As part of the agreement, Merrion has granted Novo Nordisk a warrant to acquire as much as $2 million of Merrion shares. The warrant is valid for 20 business days following the signing of a license agreement.

John Lynch, chief executive officer of Merrion Pharmaceuticals, said, “We are very pleased to be entering into another agreement with Novo Nordisk with our unique GIPET technology. This agreement further strengthens the links between the two companies following the license agreements for oral GLP-1 and Insulin respectively. This, along with the other recently announced agreements with Rebel and a top 10 pharma company, means that Merrion has an additional 6 compounds in its preclinical pipeline.”