A pharmaceutical company based overseas has bought the rights to a University drug technology that could treat Type 2 diabetes and obesity.
Although the Food and Drug Administration has yet to approve this medication, PLIVA paid a primary fee of $300,000 to the University for the research and developmental rights to the drug, according to a press release from University Relations. If the FDA eventually approves the medication, the University could receive additional payments.
The treatment, which retired biological science professor Albert Meier and former graduate student Anthony Cincotta discovered, uses a drug to alter the user’s metabolism.
The University first licensed the rights to the drug to an East Coast company that funded expensive phases of laboratory tests.
Even with the promising results of the initial tests, the FDA has required more testing before it will give its approval.
The University Office of Intellectual Property and PLIVA’s local branch arranged the agreement.
“LSU went the extra mile to make everything run as smoothly as possible,” said Jane Scott, director of business development for PLIVA’s U.S. branch. “This technology fits well into PLIVA’s strategy to expand its property business, and we are pleased to have it in our pipeline.”
PLIVA and the University cooperated well, despite the complicated process of seeking endorsement for non-approved drugs.
Private businesses often find it difficult to come to an agreement with large public universities, said Mani Iyer, director of the Office of Intellectual Property.
“We are pleased at the ease with which LSU and PLIVA were able to negotiate the new license terms,” Iyer said.
The agreement with PLIVA benefits the University’s pocketbook and adds to the University’s reputation, both of which support the objectives outlined in the University’s Flagship Agenda.
“The benefits of working together, including PLIVA’s international reach and additional research funding for LSU, will go far to support the goals of the Flagship Agenda,” said Kevin Smith, vice chancellor for research and graduate students.