Transition Therapeutics makes licensing pact for Lilly arthritis drug

Toronto-based Transition Therapeutics ($TTHI) today announced that it has acquired exclusive licensing of worldwide rights for Eli Lilly's ($LLY) experimental drug TT-601 for arthritis pain, Reuters reports. The drug has completed preclinical development, and Transition said it hopes to start human trials in the first half of 2014. Under the agreement, 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 could receive milestone payments of about $130 million and another royalty payment on sales of any products containing TT-601. The news caused shares of Transition to soar 22% on Tuesday. Release