Diamyd Medical earns back rights to diabetes drug from J&J subsidiary
STOCKHOLM — Swedish drug maker Diamyd Medical has regained control of its investigational drug for Type 1 diabetes following Johnson & Johnson’s termination of a development deal between the two companies.
Diamyd and J&J subsidiary Ortho-McNeil-Janssen Pharmaceuticals signed the deal to develop the drug, also known as Diamyd, in June 2010. But last month, Diamyd Medical reported that a phase-3 trial of the drug in Europe showed that it failed to achieve the goal of improving beta cell function in newly diagnosed Type 1 diabetes patients, leading to the cancellation of a follow-up study.
Under the deal, following J&J’s termination of the agreement, all rights for Diamyd returned to Diamyd Medical.
“We have thoroughly enjoyed working with Ortho-McNeil-Janssen Pharmaceuticals and we hope to have more opportunities for cooperation in the future,” Diamyd acting president and CEO Peter Zerhouni said.