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Drug developer Transition Therapeutics Inc. said Wednesday that it will pay $1 million to license a group of potential diabetes
drugs from Eli Lilly and Co.
In the deal, Transition Therapeutics is gaining products that are in preclinical trials, meaning they have not been tested
on people. The Toronto company said the drugs could offer patient benefits, including improved blood sugar control and weight
loss.
The partnership gives Transition worldwide license rights to the products. However Lilly will have the option to regain the
rights to the drugs until mid-stage clinical studies are complete. It may take that step if one of the drugs looks like a
potential top seller.
If Lilly reacquires the rights, Transition could get up to $250 million in development and regulatory milestone payments,
along with royalties on sales if the drugs are approved by regulators. If Transition completes development of the drugs by
itself, Lilly could get low single-digits royalties on a series of products.
Lilly, based in Indianapolis, sells the diabetes drug Byetta through a partnership with Amylin Pharmaceuticals. It entered
a partnership with Transition Therapeutics in March 2008, acquiring the rights to several products in the Transition pipeline.
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