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Phenomix and Forest Laboratories to Collaborate on Development and Commercialization of Dutogliptin in Diabetes
Date:10/23/2008

NEW YORK and SAN DIEGO, Oct. 23, 2008 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc. (NYSE: FRX) and Phenomix Corporation today announced that they have entered into a definitive collaboration agreement to develop and commercialize dutogliptin (PHX1149) in North America. Dutogliptin is Phenomix' proprietary orally administered, small molecule dipeptidyl-peptidase-4 (DPP-4) inhibitor currently undergoing Phase 3 clinical development in Type 2 diabetes mellitus.

(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )

Under the terms of the agreement, Forest will make an upfront payment to Phenomix of $75 million. Phenomix and Forest will jointly develop and commercialize dutogliptin in the United States, and the companies will equally share profits and expenses. Upon commercialization, the parties will co-promote the product in the United States, with Phenomix promoting dutogliptin to endocrinologists and diabetologists and Forest promoting to primary care and specialty physicians. Forest has exclusive rights to develop and commercialize dutogliptin in Canada and Mexico, and Phenomix will receive a royalty on sales in these countries in exchange for the rights to use jointly funded trial data in those countries. Phenomix retains development and commercialization rights to the product outside of North America, and will pay Forest a royalty on net sales in these territories. Phenomix could receive up to $340 million in upfront and milestone payments for the successful development and commercialization of dutogliptin in the United States over the term of the collaboration.

"Diabetes is a widespread and growing disease. We have
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SOURCE Forest Laboratories, Inc.
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