INDIANAPOLIS Eli Lilly and Transition Therapeutics have agreed on a deal worth up to $130 million, according to the Associated Press.
Eli Lilly would acquire worldwide rights to develop and commercialize some of the diabetes treatments in Transition’s pipeline, including the drug TT-223. TT-223 is a gastrin-based drug that stimulates the production of gastric acid. The drug is currently in midstage testing, which both companies will take part in and afterward Eli will take over the responsibility.
Under terms of the deal, Lilly will pay $7 million initially and could pay up to $130 million if the drug reaches potential development and sales milestones. Transition Therapeutics will also receive royalties on sales of gastrin-based therapies if one is successfully commercialized.