Transition in new licensing deal with Eli Lilly

Canada’s Transition Therapeutics (TSX: TTH) has entered an exclusive licensing of worldwide rights to a novel small molecule transcriptional regulator (TT-601) from US pharma major Eli Lilly (NYSE: LLY) for the treatment of osteoarthritis (OA) pain. News of the deal saw Transition’s shares leap 22% to $4.85 in after-hours trading on Tuesday.

TT-601 is a potent and selective ligand for a novel nuclear receptor target. Modulating the activity of this novel target in patients with osteoarthritis may provide pain relief to a large segment of OA patients who do not have adequate response to therapy with NSAIDs (non-steroidal anti-inflammatory drugs). TT-601 has completed preclinical development to date and Transition anticipates that the compound can enter the clinic in the first half of 2014.