BioCentury
ARTICLE | Company News

Lilly licenses preclinical OA compound to Transition

July 24, 2013 12:52 AM UTC

Eli Lilly and Co. (NYSE:LLY) granted Transition Therapeutics Inc. (TSX:TTH; NASDAQ:TTHI) exclusive, worldwide rights to develop and commercialize a preclinical compound in development for osteoarthritis pain. In 1H14, Transition plans to start clinical testing of TT-601, a small molecule that binds an undisclosed nuclear receptor.

Lilly has an option to reacquire rights to TT-601 following clinical proof-of-concept data. If Lilly exercises its option, Transition would be eligible for about $130 million in milestones, plus a high single-digit royalty. If Lilly does not exercise its option, the pharma would be eligible for a low single-digit royalty. ...