Transition's licensing partner, Elan Corporation, plc, is responsible for all development and commercialization activities and costs of ELND005. Transition is eligible to receive from Elan up to US$93 million in regulatory and launch related milestone payments plus tiered royalties ranging from 8% to 15% based on net sales of ELND005 products for any disease indication.
ELND005 is currently in three Phase II clinical trials for different indications - agitation/aggreassion in AD, bipolar disorder and Down Syndrome. These trials are performed and funded by Elan who is responsible for all development and commercialization activities and costs of ELND005.
Lilly has assumed all development and commercialization rights to type 2 diabetes drug candidate TT401. If TT-401 is successfully commercialized, Transition will be eligible to receive approximately US$240 million in additional milestone payments. Transition will also be eligible to receive a double-digit royalty on sales of TT401 products and a low single digit royalty on related compounds.
Transition has acquired the rights to develop and potentially commercialize TT601. Lilly retains an option to reacquire all rights to TT601 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$130 million 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 TT601 should such products be successfully commercialized.