Noven identifies opportunities for future Dot Matrix collaborations

By Jennifer Lanning Drey

Noven Pharmaceuticals, Inc. has identified more than 30 compounds that could provide an opportunity for the company to expand the use of its patented Dot Matrix technology, said Robert C. Strauss, president, chief executive officer and chairman of Noven, in a presentation at the FTN Midwest Securities Health Care Conference on Wednesday.

"Our strategy is to further leverage our technology across diverse therapeutic categories with strong partners," Strauss said.

The company said compounds that could possibly be combined with the Dot Matrix technology include treatments for Alzheimer's, hypertension, obesity and Parkinson's disease.

Noven's Dot Matrix transdermal drug delivery technology is currently used in conjunction with Shire Pharmaceutical Group plc's Daytrana (methylphenidate transdermal system), which is expected to launch this month.

The company has also collaborated with Novartis Pharmaceuticals Corp. to combine the technology with Vivelle (estradiol transdermal system) and is working with Procter & Gamble to join the Dot Matrix system with its Intrinsa testosterone patches.

In addition, Noven is working with Endo Pharmaceuticals Holdings Inc. to develop prescription patches in areas that have not yet been announced, Strauss said.

The company is also working with two undisclosed collaborative partners to target areas outside its current markets, he said.

"If these products are successfully developed and approved they could be on the market as early as the '07 to '09 timeframe," he said.

However, Strauss cautioned that the timeline could change due to the uncertainties of new product development and partner strategies.

Expected milestone payments

In April, Noven received a $50 million milestone from Shire upon the Food and Drug Administration's approval of Daytrana as a new therapeutic option for the treatment of attention deficit hyperactivity disorder (ADHD) in children aged six to 12 years.

Including that payment, the company has cash of just more than $130 million, Strauss said Wednesday.

"Noven's board of directors, together with management, continues to evaluate the best use of this cash consistent with our strategy for growth, our goal of expanding our technology base and our ongoing commitment to maximize shareholder value," he said.

The company hopes to receive an additional milestone payment of $25 million this year.

In addition, after the launch of Daytrana, Noven will receive ongoing manufacturing revenues from Shire with a gross margin in the 30% range, Strauss said.

"Daytrana should be a highly profitable product for Noven," he said.

Noven also has a once-daily amphetamine patch for ADHD that is in pre-clinical development through another collaboration with Shire.

Noven, based in Miami, develops advanced transdermal drug delivery technologies and prescription transdermal products.

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