CuraGen: Changes to Metabolic Disease Collaboration for the Development of BAY 76-7171
CuraGen Corporation has been informed by Bayer Pharmaceuticals Corporation that Bayer plans to license BAY 76-7171 (formerly CT052). BAY 76-7171 was discovered under an ongoing metabolic disorder collaboration between CuraGen and Bayer aimed at identifying and developing potential small molecule therapeutics for the management of diabetes. An Investigational New Drug (IND) application for BAY 76-7171 was filed with the U.S. food and Drug Administration (FDA) in November 2005. In December of 2005, CuraGen announced it had exercised its right to revert to a tiered royalty structure under which CuraGen would receive royalties on any BAY 76-7171 product sales and CuraGen would no longer contribute to the ongoing development costs for BAY 76-7171.
"Because of the changes we made to this product collaboration in December of last year, today's announcement has no direct impact on CuraGen with respect to near term value generation from our pipeline or on our resource allocation. We anticipate that the licensing effort by Bayer for this program will be positive and help support future development of BAY 76-7171, a small molecule compound being developed for potential use in the treatment of Type 2 diabetes," stated Dr. Frank M. Armstrong, President and Chief Executive Officer of CuraGen Corporation.
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