Merrion Announces License Agreement With Novo Nordisk To Develop Oral Formulation Of GLP-1 Receptor Agonist(s) -- Novo Nordisk Makes Equity Investment In Merrion

Merrion Pharmaceuticals and Novo Nordisk A/S, a world leader in diabetes, have entered into a Development and License Agreement to develop and commercialise oral formulations of a Novo Nordisk proprietary GLP-1 receptor agonist, using Merrion's proprietary GIPET® technology. This is the second license agreement between the two companies concerning Merrion's GIPET® technology -- the first agreement for the development of oral insulin analogues was signed in November 2008.

Under this new license agreement Merrion will receive up to US$58M for the first product developed under the agreement to reach the market based on achievement of certain development, regulatory and sales milestones as well as royalties on sales. Novo Nordisk is responsible and will pay for the development and commercialisation of the product candidates. Merrion is responsible for the development and manufacture of the initial clinical batches, with the work overseen by a joint development committee. Novo Nordisk and Merrion have collaborated since 2007 to test the utility of Merrion's GIPET® technology in preclinical models.

The agreement also provides Novo Nordisk with the ability to develop additional oral formulations of Novo Nordisk GLP-1 receptor agonist compounds using Merrion's proprietary absorption enhancing GIPET® technology. Merrion will be due additional milestone payments for any additional products developed under the agreement.

Novo Nordisk is subscribing for 300,000 new ordinary shares in Merrion Pharmaceuticals at a price of 3 euros per share. An application for admission to trading of these shares has been made to the Irish Stock Exchange and is expected to take place on 20 January 2009.

"This second partnership with Novo Nordisk builds on the first oral insulin analogue agreement signed in November 2008," said John Lynch, Chief Executive Officer of Merrion. "We believe that this development further demonstrates the potential for long term partnership between our two companies and also enhances our capacity to develop our other products and technologies."

"We are happy to have signed this partnership agreement with Merrion, to use the GIPET® technology in developing potential oral formulations of Novo Nordisk's proprietary GLP-1 receptor agonists. This partnership is another step in Novo Nordisk's research efforts in developing new treatments for people with diabetes," said Peter Kurtzhals, Senior Vice President, Novo Nordisk's Diabetes Research Unit.

About Merrion
Merrion Pharmaceuticals (www.merrionpharma.com) is a publicly listed specialty pharmaceutical company engaged in the development of oral forms (tablets/capsules) of drugs that have poor absorption and are generally given by injection. Merrion was established in 2004 to commercialise various technologies acquired from Elan Corporation, plc. Merrion's patented drug delivery technologies increase bioavailability, by improving absorption in the gastrointestinal tract, of drugs that are otherwise poorly absorbed. This can provide substantial benefit in patient convenience and safety, and might also provide enhanced drug efficacy. Merrion utilises its technology to develop new oral drugs in two ways; it develops its own proprietary drugs using GIPET® and partners with other pharmaceutical companies in developing oral GIPET® formulations of their products.

Merrion currently has four internal product development programs based on its GIPET® technology.

• Orazol (MER 101) is an oral bisphosphonate for oncology indications currently in Phase II development. This product aims to allow cancer patients with bone metastases take a weekly tablet to get the gold standard treatment in this area, rather than an IV infusion.
• Almerol (MER 103) which is also an oral bisphosphonate, for the treatment of osteoporosis, has completed Phase II clinical trials. Based on the market leading drug, this programme aims to provide similar absorption in just 8% of the current dose, with a simplified dosing regimen and an improved side effect profile.
• Acyline (MER 104) is a second oral oncology product for the treatment of prostate cancer, which is in Phase I clinical testing. This programme aims to be the first oral product in the area of GnRH analogues. Products in this class also have several other male/female health indications.
• MER 102 an oral anticoagulant is in preclinical testing. This programme aims to be the first oral product in LMWH class of drugs, and to offer patients the alternative to daily injections.

Merrion has agreements with several pharmaceutical companies.

Merrion has operations in Dublin, Ireland and Wilmington, NC, USA.

About Novo Nordisk
Novo Nordisk (www.novonordisk.com) is a healthcare company and a world leader in diabetes care. In addition, Novo Nordisk has a leading position within areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. With headquarters in Denmark, Novo Nordisk employs approximately 26,550 employees in 80 countries, and markets its products in 179 countries. Novo Nordisk's B shares are listed on the stock exchanges in Copenhagen and London. Its ADRs are listed on the New York Stock Exchange under the symbol 'NVO'. For more information, visit novonordisk.com.

SOURCE: Merrion Pharmaceuticals plc