TransTech Pharma, Forest Laboratories Holdings agree to develop and commercialize GKA compounds

TransTech Pharma, Inc and Forest Laboratories, Inc. (NYSE: FRX), today announced that TransTech Pharma and Forest Laboratories Holdings Limited, a wholly owned subsidiary of Forest Laboratories, Inc. have entered into a license agreement for the development and commercialization of small molecule compounds discovered and developed by TransTech Pharma. These compounds are functionally liver-selective Glucokinase Activators (GKAs), which represent a novel class of glucose-lowering agents for the treatment of diabetes.

Through the license agreement, Forest will provide to TransTech Pharma an upfront license payment of $50 million. TransTech Pharma could receive up to $1.105 billion in upfront and milestone payments for the successful development and commercialization of the GKA compounds. Forest will also pay TransTech Pharma royalties on worldwide product sales and will be responsible for development and commercialization costs. TransTech Pharma retains the rights to the Middle East and North Africa, while Forest receives exclusive rights to the rest of the worldwide market. The portfolio licensed by Forest consists of a lead compound, TTP399, which has completed Phase I studies and other compounds in Phase I and pre-clinical stages of development.

Adnan M. M. Mjalli, Ph.D., Founder, Chairman and Chief Executive Officer of TransTech Pharma, said, "We are excited to be partnering our GKA program with Forest. We selected Forest because of its highly dedicated team and leadership that bring a wealth of experience and resources to our compounds. Forest is driven by entrepreneurial spirit, innovation and dedication. We believe this novel class of compounds has the potential to be a major therapeutic advance in the treatment of diabetes. Our GKAs are specifically selected to improve glycemic control without exerting pressure on the pancreas to produce insulin. We are encouraged by early data suggesting potential additional decreases in serum lipids which tend to be elevated in diabetic patients."

Howard Solomon, Chairman and Chief Executive Officer of Forest, said, "We are pleased to partner with TransTech Pharma for this novel and exciting program. Diabetes is a serious disease with a substantial need for new treatments. We are impressed with TransTech's experience in selecting liver targeted GKAs that have the potential to contribute to diabetic control without increasing the risk of hypoglycemia. The program may offer a unique and compelling new therapeutic option for the millions of patients who suffer from diabetes and we look forward to advancing it through development."