Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI) has signed an exclusive agreement with Diamyd Medical AB to develop and commercialize Diamyd’s GAD65 antigen-based therapy for the treatment and prevention of type 1 diabetes and associated conditions. This investigational therapy is currently being evaluated in Phase III studies in for its ability to delay or prevent progression of the disease and its associated complications by delaying or preventing further destruction of pancreatic islet beta cells.

Diamyd will receive an initial payment of $45 million and OMJPI will share ongoing R&D costs. OMJPI has the right to assume responsibility for the global development program after reviewing results from the first Phase III study, which are expected in 1H11. Diamyd is eligible to receive further payments based on development and regulatory milestones, as well as royalties and sales milestones. Diamyd retains the right to commercialize the product in the Nordic states.

“This approach has the potential to significantly improve the lives of patients with type 1 diabetes by focusing on beta cell function and improving glycemic control, which may potentially reduce the risk of long-term complications of this disease,” said Martin Fitchet, M.D., Global Therapeutic Area Head, Cardiovascular & Metabolism, for Johnson & Johnson Pharmaceutical Research & Development, LLC, an OMJPI affiliate. “This program strengthens our development pipeline and reflects our commitment to build a leading portfolio of pharmaceutical treatments for the care of patients with diabetes.”