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Chiasma Grants Option to License Transient Permeability Enhancer (TPE) Technology for Small Molecule Products
Date:1/19/2010

JERUSALEM, Jan. 19 /PRNewswire/ -- Chiasma, Inc., a privately held biopharma company, announced today that it has granted Novartis an option to obtain exclusive worldwide rights to develop and commercialize the Company's Transient Permeability Enhancer (TPE) technology for use with certain related small molecule products either in development or currently marketed by Novartis. In a separate but related agreement, the MPM Bio IV NVS Strategic Fund L.P. made an equity investment in Chiasma.

The two companies have initiated a feasibility program funded by Novartis. Should Novartis exercise the option, it would assume the global clinical development, manufacturing, regulatory submissions and commercialization of the products containing the TPE technology. Chiasma would receive payments upon the option exercise and upon successful completion of certain development and regulatory milestones. In addition, Chiasma would be eligible to receive a percentage of any incremental profits generated as a result of the incorporation of the TPE technology into these Novartis products. Additional terms were not disclosed.

Fredric Price, Chairman and CEO of Chiasma said, "Our strategy is two-fold: (1) to develop our own proprietary products and seek out partnerships after demonstrating clinical effectiveness and safety; and (2) to enter into arrangements with companies whose important drugs could benefit from the TPE technology.

"Our internally-developed pipeline is focused on developing new therapies by selecting approved macromolecules that are currently available in injectable form, changing the route of administration to oral and evaluating them for new indications, thereby creating new drugs that will take advantage of the 505(b)(2) regulatory route in the US and similar regulations in other countries.'/>"/>

SOURCE Chiasma, Inc.
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