Transition Therapeutics Inc (USA) (NASDAQ:TTHI) and Eli Lilly and Co (NYSE:LLY) have entered a new collaboration worth $100 million in exchange of full rights to develop and promote the muscle-building drug TT701. Eli Lilly would be giving the company the TT701 drug candidate that shows the possibility of augmenting the body mass and strength. The $100 million would help Lilly concentrate on the research work of some existing drugs and focus on new products.
Once the TT701 drug molecule is successfully used as a drug, the Lilly was also entitled to receive a royalty on the commercialization of the said drug. According to a Transition spokesperson, recently TT701 was part of a Phase 2 study involving 350 patients and found that this drug molecule helped not only in increasing the muscle content, but also significantly reduced fat without causing any affect on the antigen levels.
Great Opportunity
Transition’s chairman and chief executive officer of transition, Dr Tony Cruz, said that they were delighted to establish a relationship with Lilly for development of a new drug candidate that held a huge potential in reviving the muscles. Not only was it a great opportunity, since it was found to be safe, but it would lead the company to complete the Phase 2 study.
Lilly had discarded the drug after phase 2 and Transition is going to offer a significant medical innovation in the form of this drug and has already planned their development strategy for TT701. The company is currently looking to kick off the phase 2 trials and ascertain the exact benefit associated with the drug. Transition has seen no major breakthrough after their ELND005 that the company continues to develop for fighting of symptoms of violent behavior and anxiety in Alzheimer’s disease and Down syndrome.
Collaboration Already Underway
The two pharmaceuticals are also working together on another drug molecule – TT401 that is associated to cure type 2 diabetes and the weight issue caused by the disease. The TT401 is undergoing phase 2 clinical trials at the moment to ascertain their benefits and side effects in curing patients. All the development and commercial rights of the TT401 are vested with Lilly.
