Transition inks $137M diabetes collaboration with Lilly

Eli Lilly has signed on to collaborate with Transition Therapeutics on the development of Transition's diabetes therapies. Transition will pocket a $7 million upfront fee and stands to gain up to $130 million more in milestones. Transition has been advancing gastrin-based therapies. Researchers from both companies will collaborate on a mid-stage trial of Transition's TT-223, after which Lilly takes over development responsibilities. They're following up on research that indicates that gastrin analogues--either alone or in combination with existing therapies--could play a key role in sustained glucose control for type 2 diabetes patients. Some terms of the deal were not disclosed. Shares of the Toronto-based Transition surged about 5 percent this morning.

- check out the AFX report
- here's the press release