Biodel Inc. (NASDAQ: BIOD) signed a research supply and technology development agreement with HEC Pharm for ultra-rapid-acting insulin aspart. Insulin aspart is the active pharmaceutical ingredient (AMEX:API) in Novo Nordisk's (NYSE: NVO) Novolog.
Biodel will use insulin aspart supplied by HEC to develop aspart-based ultra-rapid-acting insulin formulations. Under the terms of the deal, HEC has the option to acquire an exclusive license to develop and market any of Biodel's aspart-based candidates in China. However, Biodel retains rights to these candidates in other markets.
We note that recent positive early-stage top-line results on two lispro-based ultra-rapid-acting insulin formulations, BIOD-238 and BIOD-250, encouraged Biodel to procure supply of insulin aspart to develop aspart-based insulin formulations.
Meanwhile, Biodel continues to focus on its lead candidate for an ultra-rapid-acting insulin formulation, BIOD-531. The company has plans to advance BIOD-531 to phase II studies for assessing its benefits on post prandial control of glucose in diabetic patients.
Recently, Biodel and Emergent BioSolutions (NYSE: EBS) signed a long-term manufacturing agreement for a dual-chamber glucagon rescue device under the Glucagon Emergency Management (GEM) development program. Biodel intends to submit an Investigational New Drug application for the device to the U.S. Food and Drug Administration (FDA) in the second half of 2014.
Currently, the diabetes market is highly crowded with several players including Novo Nordisk. Approved drugs in this market include Victoza and Bydureon among others.
We expect investor focus to remain on further pipeline updates from Biodel.
Biodel carries a Zacks Rank #2 (Buy). A better-ranked stock in the health care sector is ImmunoGen, Inc. (NASDAQ: IMGN) with a Zacks Rank #1 (Strong Buy).
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