Transition In-licenses TT-601 From Lilly For Osteoarthritis Pain - Quick Facts

(RTTNews) - Transition Therapeutics Inc. (TTHI, TTH.TO) announced the exclusive licensing of worldwide rights to develop and potentially commercialize novel small molecule transcriptional regulator TT-601 from Eli Lilly and Co. (LLY) for the treatment of osteoarthritis pain.

OA is the most common form of arthritis and is a chronic condition characterized by the breakdown of the joint's cartilage. TT-601 has completed preclinical development to date and Transition expects can enter the clinic in the first half of 2014.

Lilly retains an option to reacquire all rights to TT-601 following review of clinical proof-of-concept study results. If Lilly exercises this option, Transition would be eligible to receive milestone payments of approximately $130 million and a high single-digit royalty on sales of products containing TT-601 should such products be successfully commercialized.

If Lilly does not exercise this option right, Lilly would be eligible for a low single-digit royalty from Transition on sales of products containing TT-601 should such products be successfully commercialized.

Tony Cruz, Chairman and Chief Executive Officer of Transition, stated, "We are very pleased with the opportunity to continue our relationship with Lilly through the in-licensing of TT-601. Molecules in this novel class have shown target engagement in the joint space and efficacy in multiple animal models of joint pain. We look forward to TT-601 clinical studies as this drug candidate has the potential to provide an important new source of pain relief to the more than 27 million Americans suffering from OA"