Janssen and ViaCyte agree diabetes product partnership

Janssen has signed a new commercial collaboration with ViaCyte, pertaining to the continued development of a promising treatment for type 1 diabetes.

The deal will see Janssen pay ViaCyte $20 million (12.06 million pounds) to support research into the VC-01 combination product, a stem-cell derived islet replacement therapy for insulin-dependent diabetes.

ViaCyte will use the funds to accelerate the clinical development of the VC-01 product candidate, with Janssen receiving the future right to evaluate a transaction for the drug if it proves successful in patient trials.

An initial clinical study of the therapy is set to be initiated in the near future.

Dr Paul Laikind, president and chief executive officer of ViaCyte, said: "These important transactions provide us with additional resources we need to pursue the further development of the VC-01 product candidate as a potential new treatment option for patients with type 1 diabetes."

Janssen has made considerable investments in the field of diabetes researching, receiving European approval for Vokanamet – a promising new combination therapy for type 2 diabetes – earlier this year.