Date: Jan 23, 2013 Author: press release Source: Evaluate Group (
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Source Press Release
Company Cortendo
Tags Acquisition
Date January 23, 2013
Transaction strengthens Cortendo's strategic position in Diabetes
Göteborg, Sweden-January 23, 2013. Cortendo AB [ticker: CORT on NOTC-A] today provided an update on its existing collaboration and ownership position of BioPancreate Inc., a developer of novel oral treatment modalities for insulin dependent diabetes. Following a recent shareholder approval, Cortendo increased its ownership position to 49% of the outstanding BioPancreate share capital and continues to hold an option to acquire the remaining shares. With this transaction, Cortendo adds to its existing patent estate and know-how in diabetes.
BioPancreate is developing a potential breakthrough treatment for insulin dependent diabetes -- by simple oral dosing BioPancreate is developing a novel technology that could result in oral therapy for insulin dependent type 1 and type 2 diabetes patients. The patent pending therapeutic approach uses modified probiotic human bacteria that reprogram intestinal endocrine cells into glucoseresponsive insulin secreting cells, thus creating a ‘surrogate pancreas' in the gut. The research is currently in pre-clinical development. BioPancreate's goal is to file an IND by the end of 2013 or early 2014.
Based on modifying naturally occurring human probiotic bacteria BioPancreate's biopharmaceutical products under development for diabetes are modifications to the naturally occurring probiotic bacteria that exist in the human gastrointestinal tract. Natural probiotics have been shown to be not only safe, but in many ways, beneficial when taken orally. The BioPancreate technology advances this approach into a distinct therapeutic application for diabetes by utilizing these bacteria to both produce and deliver an active agent to induce insulin formation in the small intestine.
The insulin market is large and growing strongly and still has significant unmet need The global market for insulin products is approximately $18 billion and has shown 13% growth over the last ten years. The incidence and prevalence of diabetes is now at pandemic levels with nearly 300 million diabetics anticipated worldwide by 2030. Approximately 1 in 12 people in the Unites States now have been reported to have diabetes. The direct medical costs in the US are estimated to be approaching $ 200 billion.
Patients with type 1 diabetes and late stage type 2 diabetes generally become insulin dependent. Even if patients manage their disease with injected insulin, many are unable to achieve even closeto- normal glucose metabolism. Despite all of the new therapeutic advances, diabetes remains the leading cause of blindness, amputations, and kidney failure leading to shortened life expectancy. Diabetes-related heart disease, stroke, amputations and kidney failure have risen over the past decade, despite all of the new medications and new types of insulin available. Cortendo believes that the diabetes market is very attractive to invest in. The market is large and growing rapidly, driven by significant longer-term trends that are increasing the number of patients that could be served by new products like those under development at BioPancreate.
BioPancreate and its Core Technology
BioPancreate's mission is to discover and develop novel oral therapies based on genomic modification of human commensal bacteria for treating major human diseases, e.g., diabetes and other endocrine and gastrointestinal disorders. The core technology is exclusively licensed to BioPancreate from Cornell and is being supported by NIH grants. The inventor, Dr. John C. March is an Associate Professor in Cornell's Department of Biological and Environmental Engineering. His research into using commensal bacteria to treat diabetes was bestowed the Presidential Early Career Award for Scientists and Engineers in September 2011. This award is the highest honor bestowed by the US government on science and engineering professionals in the early stages of their independent research careers.
Risk and uncertainty
The development of pharmaceuticals carries significant risk. Failure may occur at any stage during development and commercialization due to safety or clinical efficacy issues. Delays may occur due to requirements from regulatory authorities not anticipated by the company.
