P&G and ARYx to commercialize ATI-75

US drugmaker Procter and Gamble Pharmaceuticals, a division of Procter and Gamble, and fellow US pharmaceutical firm ARYx Therapeutics say they have entered into a strategic alliance under which they will develop and commercialize the latter's ATI-7505, an oral serotonin type 4 agonist currently in Phase II clinical development, as a treatment for gastrointestinal disorders such as gastroesophageal reflux disease and gastroparesis. Under the terms of the deal, which remains subject to clearance under the Hart-Scott-Rodino Improvements Act, ARYx would grant P&G the worldwide development and commercialization rights to the product. In exchange, the Fremont-headquartered firm will receive a $25.0 million upfront fee, developmental milestone payments and royalties on eventual product sales. In addition, ARYx retains the option to carry out co-development and co-promotion of the drug, and says that, in total, the agreement could yield $435.0 million over the life of the project, including a potential $250.0 million prior to any commercialization.