DOW JONES NEWSWIRES

Danish pharmaceutical company Novo Nordisk A/S (NOVO-B.KO) said Tuesday it has entered a development and licensing agreement with U.S.-based Emisphere Technologies Inc. (EMIS) to develop and and commercialize oral formulations of Novo Nordisk's insulins.

The agreement includes $57.5 million in potential product development and sales milestone payments to Emisphere, of which $5 million will be payable upon signing, as well as royalties on sales.

The deal is the second licensing deal between the companies, following an agreement in 2008 for development of oral formulations of GDP-1 receptor antagonist drugs.

At 1045 GMT, shares in Novo Nordisk were up 0.1%, against a 0.3% rise in the wider Copenhagen market.

-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com