Shaman, Lipha S.A. deal

The companies will jointly develop SHMN compounds for antidiabetic drugs under a five-year agreement. The 10 orally active compounds, derived from tropical plants, reduce blood glucose in animal models of Type II diabetes.

Lipha, a subsidiary of Merck KGaA (Darmstadt, Germany), receives exclusive worldwide marketing rights (excluding Japan, South Korea, and Taiwan). In return, Lipha will commit $19.5 million, about half in equity investments at a premium to the market price, and the other half in research funding. SHMN could receive an additional $10 million per compound to cover development costs. ...