TRANSITION THERAPEUTICS INC. T.TTH

Novo Nordisk A/S Exercises Option to License

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Novo Nordisk A/S Exercises Option to License Transition Therapeutics' Islet Neogenesis Technology [DKPRCDG] /Not for distribution to United States newswire services or for dissemination to the United States/ TORONTO, June 24 /CNW/ - Transition Therapeutics Inc. ("Transition") (TSX: TTH) announced today that Novo Nordisk A/S ("Novo Nordisk"), a world leader in diabetes care, has exercised its option to license Transition's Islet Neogenesis Therapy ("I.N.T. ") technology. Signing of a formal license agreement is anticipated to occur in the near future. "We are very pleased with Novo Nordisk's decision to license the I.N.T.(TM) technology. Novo Nordisk's vast diabetes expertise will be an important asset in the clinical development of I.N.T.(TM)." said Tony Cruz, Chairman and CEO of Transition. Under the terms of the option agreement, Novo Nordisk has paid an option exercise fee of $US 200,000 and has agreed to purchase 3,164,557 common shares of Transition at a price of $1.58 per share. Closing of this $5,000,000 investment is subject to regulatory approval and the entering into of the formal licensing agreement. The shares issued to Novo Nordisk will be subject to a four month hold period. The I.N.T.(TM) technology platform is based on the discovery that a short course of injections of naturally occurring peptides could regenerate a body's insulin-producing cells. Two islet neogenesis products are under development, Transition's lead product, I.N.T.(TM), which has completed two phase I clinical trials and GLP1- I.N.T.(TM) which is currently in pre-clinical development. About Transition Transition is a Canadian biopharmaceutical company, engaged in the business of developing novel approaches and therapeutics with the potential for enhancing the quality of life of patients with such debilitating diseases as diabetes, multiple sclerosis and restenosis. Transition's lead products include I.N.T.(TM) for the treatment of diabetes and Interferon Enhancing Therapy for the treatment of multiple sclerosis. In addition, Transition has identified a lead class of compounds to inhibit restenosis induced by stenting. Transition's shares are listed on the Toronto Stock Exchange under the symbol "TTH". About Novo Nordisk Novo Nordisk is a focused healthcare company. With the broadest diabetes product portfolio in the industry, including the most advanced products within the area of insulin delivery systems, Novo Nordisk is a world leader in diabetes care. In addition, Novo Nordisk has a leading position within areas such as hemostasis 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 18,200 people in 68 countries and markets its products in 179 countries. %SEDAR: 00015806E For further information: on Transition, visit www.transitiontherapeutics.com or contact: Dr. Tony Cruz, Chief Executive Officer, Transition Therapeutics Inc., Phone: [phone], x.223, [e-mail]; Catherine Auld, Chief Financial Officer, Transition Therapeutics Inc., Phone: [phone], x.224, [e-mail] 24Jun04 14:29 GMT Symbols: ca;TTH Source CNW Canada News Wire Categories: L/EN NWI/MTC NWR/ON NWS/LIC MST/L/EN MST/R/CA REV5 TGT/CAN