Lilly licenses gastrin agents from TT

US drug major Eli Lilly has entered into a licensing and collaboration agreement with Transition Therapeutics granting the former exclusive worldwide rights to develop and commercialize its gastrin-based therapies, including the lead compound TT-223, which is currently in early Phase II testing. Gastrin based-therapies are an emerging class of potential disease-modifying agents for patients with diabetes, and have been shown to provide sustained improvement in glycemic control in preclinical models and early clinical studies.

Under the terms of the accord, Transition will get a $7.0 million upfront payment, and may also receive up to $130.0 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 will both participate in the currently planned Phase II clinical trial with lead compound TT-223 in type 2 diabetes, after which Lilly will take responsibility. Other terms of the deal were not disclosed.