Phosphagenics and Nestlé Nutrition extend option agreement
Phospha E® clinical program to progress as planned
Phosphagenics Limited announced that it has, by mutual consent, extended the period in which a commercial agreement is to be concluded with Nestlé Nutrition. In January 2007, Nestlé exercised its option to negotiate (on an exclusive basis) a commercial agreement with Phosphagenics for the use of its Phospha E® to treat and prevent metabolic syndrome.
Nestlé has received regulatory approval of its acquisition of Novartis Medical Nutrition, substantially improving Nestlé's position in the fast growing and profitable healthcare nutrition segment. Gradual integration of Novartis activities is planned during the next months. As Phospha E® would be marketed by the extended Nestlé enterprise, the acquisition of Novartis has the potential to increase the value of the arrangement between Nestlé and Phosphagenics. In these circumstances, it was considered by both parties to be premature to conclude their commercial arrangements before consolidation of Novartis activities.
To avoid any delays in the development of Phospha E®, Nestlé and Phosphagenics are continuing their planned clinical program, with the first human trial intended to commence this quarter.
This clinical trial follows on from the successful completion of a series of full dose-response pre-clinical studies of Phospha E®. Nestlé and Phosphagenics are continuing to work together to develop Phospha E® for use as a nutritional product, targeting the prevention and treatment of metabolic syndrome.
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