Forest Labs dumps $340M diabetes drug pact with Phenomix

San Diego-based Phenomix is out looking for a new partner for its late-stage diabetes drug. Forest Laboratories abruptly terminated their $340 million pact on dutogliptin, a 2008 deal that provided the pharma company with North American marketing rights.

Phenomix says that the therapy hit its primary goal of lowering HbA1c levels in Phase III. The most common side effect was a urinary tract infection.

"We are disappointed that on the heels of such positive Phase III data that we will not be moving forward with our collaboration with Forest," said Phenomix CEO Laura Shawver. "We expect to be talking to new prospective partners soon."

Just last December Italy's Chiesi struck a $191 million pact with Phenomix covering Europe and some smaller markets.

- check out Phenomix's release on the Phase III data
- here's the story from the San Diego Business Journal