Japanese diabetes drug progresses to third phase of clinical testing

• Japan's Takeda Pharmaceutical Co. (4502.T: Quote, Profile, Research) said on Friday its experimental diabetes drug SYR-322 has entered phase III clinical studies in the United States while its obesity medicine ATL-962 has begun phase II studies in Japan.
• Japan's biggest drug maker has been stepping up development of new drugs to help mitigate the impact of the expiry of U.S. patents on its main products -- ulcer drug Prevacid in 2009, and Blopress hypertension treatment and diabetes medicine Actos in 2011.
• Takeda said the SYR-322 is a DPP4 inhibitor, a drug which blocks the degradation of a kind of peptide that helps increase the secretion of insulin and helps to maintain the concentration of the peptide in blood for a longer period of time.
• The Osaka-based company did not say how much in sales it expected from the new drug, but it has high expectations for SYR-322.
• Takeda is also developing another diabetes drug which is expected to succeed Actos.
• As a result of the advancement in clinical development of SYR-322, Takeda will give a $15 million milestone payment to U.S. bioventure Pharmaceutical Product Development Inc., which used to develop the drug with Takeda's U.S. unit.
• Takeda will also pay $2 million to U.K. bioventure Alizyme Plc (AZM.L: Quote, Profile, Research) since ATL-962 has moved to the phase II stage, the spokesman said.
• Takeda acquired the right to develop, produce and sell ATL-962 in Japan in 2004 and has paid $5 million so far to Alizyme.
• Shares in Takeda closed up 0.47 percent at 6,350 yen prior to the announcement.