Biotech Values

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Transition Therapeutics (TTHI) announced the exclusive licensing of worldwide rights to a novel small molecule transcriptional regulator from Eli Lilly (LLY) and company for the treatment of osteoarthritis pain. TT-601 is a potent and selective ligand for a novel nuclear receptor target. Under the terms of the agreement, Transition has acquired the rights to develop and potentially commercialize TT-601. 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 right, Transition would be eligible to receive milestone payments of approximately US$130M 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.