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NeuroMetrix Settles Charges

NeuroMetrix will pay $3.7 million to the government and will comply with a 5-year corporate integrity agreement to settle allegations that it provided illegal kickbacks to physicians as part of a marketing program for its NC-stat neuropathy diagnostic system. The settlement, announced last month, relates to marketing practices during August 2004-2006, and fraudulent reimbursement practices during January 2003-April 2006, according to the Department of Justice. The deal stems from an investigation that began in 2006 and resolves allegations that the firm paid illegal kickbacks to physicians to encourage them to use NC-stat, and in certain circumstances led them to improperly bill Medicare.

DiaMedica Names New CEO

DiaMedica Inc., a drug discovery and clinical development company based in Winnipeg, Canada, that focuses on novel treatments for type 2 diabetes, has named Reginald (Reggie) Bowerman as its president and chief executive officer, the company announced last month. Mr. Bowerman has worked in the pharmaceutical industry for 23 years, most recently as vice president of commercial operations at MGI Pharma. He will be based in Minneapolis. “We are excited that Mr. Bowerman is joining DiaMedica in a senior leadership capacity,” said Rick Pauls, immediate past president and CEO of DiaMedica. “Mr. Bowerman's long track record of commercial success, exceptional leadership, interpersonal and organizational skills, along with a diverse industry background in the pharmaceutical sector, will guide DiaMedica as we continue to develop into a world-class biopharmaceutical company. The widely recognized success of MGI Pharma as a biopharmaceutical company, in which Mr. Bowerman played a key leadership role, will provide him with significant insights into where we seek to move DiaMedica going forward,” said Mr. Pauls, who will continue to serve as chairman of DiaMedica's board of directors and will work closely with Mr. Bowerman during the transition. In accordance with the company's stock option plan, DiaMedica has granted Mr. Bowerman 500,000 stock options at an exercise price of $1.00 per share. The options are subject to regulatory approval.

Ceapro, IR2Dx Sign Agreement

Ceapro Inc. has signed a research and commercial development agreement with IR2Dx Inc., an assay development firm, to conduct a research project comparing the commonly used liquid oral glucose tolerance test to CeaProve, a test food developed by Ceapro. CeaProve comprises six wafers containing 50 g of glycemic carbohydrate, fat, and protein. The standard glucose tolerance test “is widely perceived to have significant weaknesses and limitations, including variability, false negatives, required time of over 2 hours, and side effects, which are addressed or minimized with CeaProve,” the company said in a statement last month announcing the agreement. After the completion of a pilot phase, the company expects that 500 patients will be enrolled in a multisite trial, expected to last about a year. CeaProve's development costs will be jointly covered by Ceapro and IR2Dx. Ceapro will remain responsible for the manufacturing of the product and will receive royalties on net sales in addition to regulatory milestones. IR2Dx will have worldwide marketing rights for thehospital, clinic, and physician market.

HGS Receives Milestone Payment

The pharmaceutical company Human Genome Sciences announced last month that GlaxoSmithKline has begun a phase III clinical trial program to evaluate the efficacy, safety, and tolerability of albiglutide (Syncria) in the long-term treatment of type 2 diabetes. As a result, HGS will receive a $9-million milestone payment in the first quarter of this year. “We are delighted that GSK has advanced Syncria to phase III development, and we look forward to the future progress of this important program,” H. Thomas Watkins, Human Genome Sciences' president and CEO, said in a statement. Syncria is made from the genetic fusion of human albumin and modified human GLP-1 peptide, and is designed to act throughout the body to help maintain normal blood sugar levels and control appetite. HGS, which licensed Syncria to GSK in 2004, is entitled to fees and milestone payments of up to $183 million—including $24 million received so far—if Syncria is commercialized.

Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.

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NeuroMetrix Settles Charges

NeuroMetrix will pay $3.7 million to the government and will comply with a 5-year corporate integrity agreement to settle allegations that it provided illegal kickbacks to physicians as part of a marketing program for its NC-stat neuropathy diagnostic system. The settlement, announced last month, relates to marketing practices during August 2004-2006, and fraudulent reimbursement practices during January 2003-April 2006, according to the Department of Justice. The deal stems from an investigation that began in 2006 and resolves allegations that the firm paid illegal kickbacks to physicians to encourage them to use NC-stat, and in certain circumstances led them to improperly bill Medicare.

DiaMedica Names New CEO

DiaMedica Inc., a drug discovery and clinical development company based in Winnipeg, Canada, that focuses on novel treatments for type 2 diabetes, has named Reginald (Reggie) Bowerman as its president and chief executive officer, the company announced last month. Mr. Bowerman has worked in the pharmaceutical industry for 23 years, most recently as vice president of commercial operations at MGI Pharma. He will be based in Minneapolis. “We are excited that Mr. Bowerman is joining DiaMedica in a senior leadership capacity,” said Rick Pauls, immediate past president and CEO of DiaMedica. “Mr. Bowerman's long track record of commercial success, exceptional leadership, interpersonal and organizational skills, along with a diverse industry background in the pharmaceutical sector, will guide DiaMedica as we continue to develop into a world-class biopharmaceutical company. The widely recognized success of MGI Pharma as a biopharmaceutical company, in which Mr. Bowerman played a key leadership role, will provide him with significant insights into where we seek to move DiaMedica going forward,” said Mr. Pauls, who will continue to serve as chairman of DiaMedica's board of directors and will work closely with Mr. Bowerman during the transition. In accordance with the company's stock option plan, DiaMedica has granted Mr. Bowerman 500,000 stock options at an exercise price of $1.00 per share. The options are subject to regulatory approval.

Ceapro, IR2Dx Sign Agreement

Ceapro Inc. has signed a research and commercial development agreement with IR2Dx Inc., an assay development firm, to conduct a research project comparing the commonly used liquid oral glucose tolerance test to CeaProve, a test food developed by Ceapro. CeaProve comprises six wafers containing 50 g of glycemic carbohydrate, fat, and protein. The standard glucose tolerance test “is widely perceived to have significant weaknesses and limitations, including variability, false negatives, required time of over 2 hours, and side effects, which are addressed or minimized with CeaProve,” the company said in a statement last month announcing the agreement. After the completion of a pilot phase, the company expects that 500 patients will be enrolled in a multisite trial, expected to last about a year. CeaProve's development costs will be jointly covered by Ceapro and IR2Dx. Ceapro will remain responsible for the manufacturing of the product and will receive royalties on net sales in addition to regulatory milestones. IR2Dx will have worldwide marketing rights for thehospital, clinic, and physician market.

HGS Receives Milestone Payment

The pharmaceutical company Human Genome Sciences announced last month that GlaxoSmithKline has begun a phase III clinical trial program to evaluate the efficacy, safety, and tolerability of albiglutide (Syncria) in the long-term treatment of type 2 diabetes. As a result, HGS will receive a $9-million milestone payment in the first quarter of this year. “We are delighted that GSK has advanced Syncria to phase III development, and we look forward to the future progress of this important program,” H. Thomas Watkins, Human Genome Sciences' president and CEO, said in a statement. Syncria is made from the genetic fusion of human albumin and modified human GLP-1 peptide, and is designed to act throughout the body to help maintain normal blood sugar levels and control appetite. HGS, which licensed Syncria to GSK in 2004, is entitled to fees and milestone payments of up to $183 million—including $24 million received so far—if Syncria is commercialized.

Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.

NeuroMetrix Settles Charges

NeuroMetrix will pay $3.7 million to the government and will comply with a 5-year corporate integrity agreement to settle allegations that it provided illegal kickbacks to physicians as part of a marketing program for its NC-stat neuropathy diagnostic system. The settlement, announced last month, relates to marketing practices during August 2004-2006, and fraudulent reimbursement practices during January 2003-April 2006, according to the Department of Justice. The deal stems from an investigation that began in 2006 and resolves allegations that the firm paid illegal kickbacks to physicians to encourage them to use NC-stat, and in certain circumstances led them to improperly bill Medicare.

DiaMedica Names New CEO

DiaMedica Inc., a drug discovery and clinical development company based in Winnipeg, Canada, that focuses on novel treatments for type 2 diabetes, has named Reginald (Reggie) Bowerman as its president and chief executive officer, the company announced last month. Mr. Bowerman has worked in the pharmaceutical industry for 23 years, most recently as vice president of commercial operations at MGI Pharma. He will be based in Minneapolis. “We are excited that Mr. Bowerman is joining DiaMedica in a senior leadership capacity,” said Rick Pauls, immediate past president and CEO of DiaMedica. “Mr. Bowerman's long track record of commercial success, exceptional leadership, interpersonal and organizational skills, along with a diverse industry background in the pharmaceutical sector, will guide DiaMedica as we continue to develop into a world-class biopharmaceutical company. The widely recognized success of MGI Pharma as a biopharmaceutical company, in which Mr. Bowerman played a key leadership role, will provide him with significant insights into where we seek to move DiaMedica going forward,” said Mr. Pauls, who will continue to serve as chairman of DiaMedica's board of directors and will work closely with Mr. Bowerman during the transition. In accordance with the company's stock option plan, DiaMedica has granted Mr. Bowerman 500,000 stock options at an exercise price of $1.00 per share. The options are subject to regulatory approval.

Ceapro, IR2Dx Sign Agreement

Ceapro Inc. has signed a research and commercial development agreement with IR2Dx Inc., an assay development firm, to conduct a research project comparing the commonly used liquid oral glucose tolerance test to CeaProve, a test food developed by Ceapro. CeaProve comprises six wafers containing 50 g of glycemic carbohydrate, fat, and protein. The standard glucose tolerance test “is widely perceived to have significant weaknesses and limitations, including variability, false negatives, required time of over 2 hours, and side effects, which are addressed or minimized with CeaProve,” the company said in a statement last month announcing the agreement. After the completion of a pilot phase, the company expects that 500 patients will be enrolled in a multisite trial, expected to last about a year. CeaProve's development costs will be jointly covered by Ceapro and IR2Dx. Ceapro will remain responsible for the manufacturing of the product and will receive royalties on net sales in addition to regulatory milestones. IR2Dx will have worldwide marketing rights for thehospital, clinic, and physician market.

HGS Receives Milestone Payment

The pharmaceutical company Human Genome Sciences announced last month that GlaxoSmithKline has begun a phase III clinical trial program to evaluate the efficacy, safety, and tolerability of albiglutide (Syncria) in the long-term treatment of type 2 diabetes. As a result, HGS will receive a $9-million milestone payment in the first quarter of this year. “We are delighted that GSK has advanced Syncria to phase III development, and we look forward to the future progress of this important program,” H. Thomas Watkins, Human Genome Sciences' president and CEO, said in a statement. Syncria is made from the genetic fusion of human albumin and modified human GLP-1 peptide, and is designed to act throughout the body to help maintain normal blood sugar levels and control appetite. HGS, which licensed Syncria to GSK in 2004, is entitled to fees and milestone payments of up to $183 million—including $24 million received so far—if Syncria is commercialized.

Reporters and editors from Elsevier's “The Pink Sheet” contributed to this column.

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