Tolerx starts trial for new diabetes treatment

CAMBRIDGE, Mass. Biotech company Tolerx has begun a late-stage human clinical trial for a new diabetes treatment, according to the Boston Business Journal.

As a result, development partner GlaxoSmithKline will give the company a $15 million milestone payment.

Tolerx said the trial is to test the drug otelixizumab and will involve 240 adult patients with new-onset Type 1 diabetes. The trial will take place at centers in both North America and Europe.

GSK and Tolerx joined together in the development and commercialization of the drug back in late October. If all milestones for the drug are met, the deal could be worth over $750 million.