Vernalis Group, Eli Lilly, Roche deal

LLY obtained an option to develop VER’s VML 670 to treat sexual dysfunction in patients taking selective serotonin reuptake inhibitors for depression. VER will develop the compound through proof-of-principle in patients, after which LLY has the right to complete development and commercialize VML 670, in return for milestone and royalty payments to VER. VER plans to begin Phase I trials in the second quarter and expects to begin Phase IIa studies of the selective 5-HT1A receptor agonist by year end. LLY holds a license to the same compound to treat emesis (i.e., vomiting) associated with cancer chemotherapy (see BioCentury, Sept. 14, 1998). ...