Why do Servier bets one Billion euros on Revolutionary Diabetes Drugs Delivery Device?
The French company Servier wants to invest one billion euros by a partnering with the American company Intarcia regarding their subcutaneous implant for diabetes. This is a breakthrough micropump, the first device without injection able to deliver the molecule Exenatide during one year.
It is a huge step forward in treating type 2 diabetes. Indeed, most people forget to take their pills or to measure their blood glucose level. Moreover, diabetes affects more than 382 million people worldwide and will reach 600 million people in 2035. The global market is increasing and exceeds 40 billion euros in 2013.
Under the agreement, Boston-based Intarcia will receive $171 million upfront and $230 million for three early-stage regulatory milestones. Additional development, regulatory and sales milestones could lead the entire deal to $1 billion.
Both companies will share running cost of studies that compare ITCA 650 to other leading diabetes treatments. Intarcia will continue to lead the current phase 3 trials of ICTA 650 and the effort to seek regulatory approval in the U.S., while Servier will spearhead the efforts to seek approvals outside the U.S. and Japan. In the announcement, Intarcia stated that regulatory approval filings for ICTA 650 could be submitted as early as the first half of 2016.
The French group is already present in the diabetes field and sells for more than 20 years the antidiabetic Diamicron product, which represents 11% of sales. It became famous with the scandal with Mediator and relies on its strong presence in emerging market like Russia or China. It aims to boost sells of generic internationally under the Biogaran brand.