Vanda Pharmaceuticals has acquired an exclusive world-wide license from Lilly to develop and commercialize LY686017, a small molecule neurokinin 1 receptor (NK-1R) antagonist for all human indications. The compound will be known as VLY-686.
NK-1R antagonists have been evaluated in a number of indications including chemotherapy-induced nausea and vomiting, post-operative nausea and vomiting, alcohol dependence, anxiety, depression, and pruritus. VLY-686 has demonstrated proof-of-concept in alcohol dependence in a study published by the NIH. In that study VLY-686 was shown to reduce alcohol cravings and voluntary alcohol consumption among patients with alcohol dependence.
"The licensing of VLY-686 is an important milestone for Vanda, as we continue to realize our vision of developing treatments to address unmet medical needs," said Mihael H. Polymeropoulos, M.D., president and chief executive officer of Vanda.
Vanda will pay an initial license fee of $1.0 million and will be responsible for all development costs. Lilly is also eligible to receive additional payments based upon development and commercialization milestones. Milestones include $4.0 million for pre-NDA approval milestones and as much as $95.0 million for future regulatory approval and sales milestones, in addition to tiered-royalties on net sales at percentage rates up to the low double digits.
In 2012, Vanda intends to initiate and complete the technology transfer activities and further examine the clinical and commercial profile of VLY-686. This strategic evaluation will further inform potential indications for an early development clinical program.