Eli Lilly and Transition Therapeutics have entered into a licensing and collaboration agreement granting Lilly exclusive worldwide rights to develop and commercialize Transition's gastrin-based therapies, including the lead compound TT-223, which is currently in early Phase II testing.
Under the terms of the agreement, the Toronto-based Transition will receive a $7 million upfront payment, and may also receive up to $130 million in potential development and sales milestones, as well as royalties on sales of gastrin-based therapies if any product is successfully commercialized, Transition and Lilly reported.
Transition and Lilly said that they will both participate in the currently planned phase II clinical trial with lead compound TT-223 in type 2 diabetes. Thereafter, the Indianapolis-based Lilly will be responsible for further development activities and the commercialization of all gastrin-based therapeutic products worldwide.
Other terms of the deal were not disclosed.
Gastrin-based therapies are an emerging class of potential disease-modifying therapies for patients with diabetes, and have been shown to provide sustained improvement in glycemic control in preclinical models and early clinical studies, the companies said.