Phosphagenics goes global

The Melbourne-based biotechnology company, Phosphagenics, announced today the signing of a global agreement to develop its patented transdermal (TPM) insulin delivery system for the treatment of diabetes in pets.

The deal signed with Novartis Animal Health, a business unit within the global Novartis Group, opens new opportunities for Phosphagenics in the veterinary market.

Diabetes is estimated to affect one in 50 pets worldwide and in Australia about 40 per cent of dogs and a third of the nation's cats are overweight, resulting in an increase in the incidence of diabetes in cats and dogs. The incidence rate and contributing factors are similar in many developed countries.

Diabetes results when the animal’s body either fails to produce sufficient amounts of insulin, a hormone that processes glucose, or fails to use it properly. As a result, the body's tissues cannot use glucose for energy and sugar builds up in the blood and urine.

There are a number of insulin products on the market for veterinary use. However, these products are only administered by injection, which is painful for animals and makes ongoing treatment emotionally difficult for their owners.

A transdermal delivered insulin would be user friendly, would increase the appeal of insulin, reduce non-compliance and potentially result in an increase in the size of the companion animal insulin market.

According to Phosphagenics’ Chief Operating Officer, Dr Esra Ogru, the company’s TPM delivery system could gain appeal in the veterinary sector.

“This opens up a whole new source of partnership opportunities for Phosphagenics,” said Dr Ogru.

“Working with Novartis in the veterinary sector aligns with our commercialisation strategy of diversifying the application of our technology into many and varied fields. We are very pleased to be working with one of the world leaders in animal health.”

Specific terms of the agreement are not being disclosed. Novartis will pay the costs of developing the insulin product, and should it elect to pursue the formulations resulting from the collaboration, Phosphagenics will receive an initial payment, milestone payments and royalties.