Transition Therapeutics Inc. has acquired the development and commercialization rights to the neuropsychiatric drug candidate, ELND005, from Perrigo. ELND005 is an oral drug candidate being evaluated in three Phase II studies for agitation and aggression in Alzheimer's disease, bipolar disorder and Down syndrome. Additionally, Perrigo will invest $15 million and acquire approximately 7% of Transition's common shares.
Through a series of transactions, Perrigo has transferred its ELND005 rights and assets to, what will be referred to as, Irish Subsidiary, which Transition has acquired as a wholly-owned subsidiary. Perrigo is eligible to receive as much as $40 million in approval and commercial milestone payments and a 6.5% royalty on sales of ELND005 products. Going forward, Irish Subsidiary will be responsible for all future development and commercialization activities of ELND005.
"ELND005 is a unique drug candidate that has been shown to have an acceptable safety profile in six clinical studies and reduced the emergence of multiple neuropsychiatric effects including agitation, aggression, depression and anxiety in a Phase II study. By acquiring the ELND005 rights, Transition has the opportunity to complete the current Phase II studies underway in agitation and aggression in Alzheimer's disease, and mood changes in bipolar disorder. We are very pleased to work with Perrigo and look forward to completing the current trials of ELND005," said Dr. Tony Cruz, chairman and chief executive officer of Transition.