Report: Altea Therapeutics sinks after inking Lilly deal

Atlanta-based biotech Altea Therapeutics has reportedly hit the rocks. After raising more than $60 million in venture funding, and striking a development pact with Eli Lilly and Amylin Pharmaceuticals, the company ran dry on capital and plans to shutter its operations, the Atlanta Business Chronicle reported Friday.

The biotech was developing a transdermal patch to deliver drugs into the skin, rather than with injections into muscles or infusions. In 2009, Lilly and Amylin signed on to develop the patch tech to provide doses of the diabetes drug Byetta, but that tie-up appears to have gone south and Altea wasn't able to stay afloat, according to the Chronicle's story.

The pact with Lilly and Amylin was supposed to be worth $46 million to Altea, with a portion of the money dependent on the program meeting certain development and regulatory milestones. Since the deal was struck, of course, Lilly and Amylin have broken ties concerning Byetta, with Amylin buying Lilly's rights to the program. FierceBiotech left a message at Altea's offices this morning but was unable to reach company officials to get clarification on what happened to the program.

- check out the Chronicle's article (sub. req.)

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