Transition Therapeutics, Eli Lilly deal

Eli Lilly granted Transition exclusive, worldwide rights to develop and commercialize TT-601, a preclinical compound in development for osteoarthritis pain. Next half, Transition plans to start clinical testing of the small molecule that binds an undisclosed nuclear receptor. The partners declined to disclose details.

Lilly has an option to reacquire rights to TT-601 following clinical proof-of-concept data from a Phase IIa trial. 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. ...