Lilly pays Transition $7 million
pharmafile | June 19, 2013 | News story | Research and Development, Sales and Marketing | Transition, lilly
Eli Lilly is to take up its option to develop and commercialise a type 2 diabetes candidate, paying Canadian firm Transition Therapeutics $7 million for the rights.
TT-401 is a dual agonist of the Glucagon-like peptide-1 (GLP-1) and glucagon receptors and Lilly says it is “encouraged by the early data seen to date” for the drug, which is about to move into Phase II.
The firms have been tied into a licensing agreement since March 2010, with Transition acquiring the rights to several pre-clinical compounds from Lilly, including TT-401.
Lilly will now take over all costs for the drug’s development, although Transition – which took TT-401 through Phase I – will pay $14 million to Lilly in three installments during the Phase II study.
Transition could receive around $240 million if things go well for its lead metabolic candidate, in addition to potential double-digit royalties on sales of TT-401 products and a low single digit royalty on related compounds.
GLP-1 is a hormone secreted from the intestine during eating to help regulate blood sugar levels: as well as doing this, GLP-1-based therapy is known to suppress appetite and food intake, raising interest in it as a potential obesity treatment.
Existing GLP-1 agonists include Novo Nordisk’s Victoza (liraglutide) and Lilly’s own Byetta (exenatide) – and it is Lilly’s team which will be working on TT-401 in Phase II.
“We look forward to continuing the development of TT-401, as it supports our strategy of offering a broad portfolio of therapies for people with diabetes,” said David Moller, vice president of endocrine and cardiovascular research and clinical investigation for Lilly.
“Our additional financial contribution secures a greater vested interest for Transition, and we welcome the opportunity to invest in this drug candidate that has shown encouraging data in the recently announced human proof-of-concept study,” said Transition chief executive Tony Cruz.
Transition specialises in developing novel therapeutics in mass-market indications, and its lead central nervous system candidate is ELND005 for the treatment of Alzheimer’s disease and bipolar disorder.
Adam Hill
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