OSI, Probiodrug deal

OSIP subsidiary Prosidion Ltd. (Oxford, U.K.) acquired from Probiodrug a dipeptidyl peptidase-4 (DPP-4) program for metabolic indications for $35 million in cash plus milestones. The deal includes Probiodrug's P93/01 DPP IV inhibitor to treat Type II diabetes, which is expected to start Phase IIa studies in the second half.

Under a 3-year agreement, Prosidion will fund ongoing research at Probiodrug for a P93/01 back-up program. Probiodrug could receive milestones and royalties. Probiodrug retains rights to develop DPP IV compounds for gastrointestinal, CNS and autoimmune disorders and expects to begin a Phase I study in the first half of next year. ...