TORONTO, June 17, 2013 /CNW/ - Transition Therapeutics Inc. ("Transition" or the "Company") (NASDAQ: TTHI, TSX: TTH) announced that
Eli Lilly and Company ("Lilly") has exercised its option to assume all
development and commercialization rights to type 2 diabetes drug
candidate TT-401. In conjunction with this assumption of rights,
Transition will receive a US$7 million milestone payment.
Lilly and Transition have amended their agreement to address future
development of TT-401 and associated financial arrangements. Lilly
will assume all costs and perform all future development and
commercialization activities of TT-401. Transition will contribute
payment of US$14 million to Lilly in three separate installments during
the Phase 2 clinical study. If TT-401 is successfully commercialized,
Transition will be eligible to receive approximately US$240 million in
additional milestone payments. Transition will also be eligible to
receive a double-digit royalty on sales of TT-401 products and a low
single digit royalty on related compounds.
"We are encouraged by the early data seen to date with TT-401, and are
pleased by the efficient and thorough process by which Transition
Therapeutics conducted the Phase 1 studies," said David Moller, vice
president of endocrine and cardiovascular research and clinical
investigation for Lilly. "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."
"We are very pleased with Lilly's commitment to the development of
TT-401. The Phase 2 efficacy study and parallel product development
work will be performed by Lilly's world-class clinical development
team. 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 Dr. Tony Cruz, chairman
and chief executive officer of Transition.
TT-401 is a dual agonist of the GLP-1 (Glucagon-Like Peptide-1) and
glucagon receptors which is being developed to treat type 2 diabetes
and accompanying obesity. In March 2010, Transition entered into a
licensing and collaboration agreement with Eli Lilly and Company, where
Transition acquired the rights to a series of pre-clinical compounds
from Lilly, including TT-401 for the treatment of type 2 diabetes.
Transition is a biopharmaceutical company, developing novel therapeutics
for disease indications with large markets. The Company's lead CNS drug
candidate is ELND005 for the treatment of Alzheimer's disease and
bipolar disorder. Transition's lead metabolic drug candidate is TT-401
for the treatment of type 2 diabetes and accompanying obesity. The
Company's shares are listed on the NASDAQ under the symbol "TTHI" and
the Toronto Stock Exchange under the symbol "TTH". For additional
information about the Company, please visit www.transitiontherapeutics.com.
Notice to Readers: Information contained in our press releases should be
considered accurate only as of the date of the release and may be
superseded by more recent information we have disclosed in later press
releases, filings with the OSC, SEC or otherwise. Except for historical
information, this press release may contain forward-looking statements,
relating to expectations, plans or prospects for Transition, including
conducting clinical trials and potential efficacy of its products.
These statements are based upon the current expectations and beliefs of
Transition's management and are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. These risks and
uncertainties include factors beyond Transition's control and the risk
factors and other cautionary statements discussed in Transition's
quarterly and annual filings with the Canadian commissions.
SOURCE: Transition Therapeutics Inc.
For further information:
For further information on Transition, visit www.transitiontherapeutics.com or contact:
Dr. Tony Cruz
Chief Executive Officer
Transition Therapeutics Inc.
Phone: 416-260-7770, x.223