Lilly gives up on TT401, returning the diabetes candidate to Transition

Canada’s Transition Therapeutics (TSX: TTH) says it has received notification that US pharma major Eli Lilly (NYSE: LLY) will not elect to advance diabetes drug candidate, TT401 into Phase III development.

Under the companies' 2010 collaboration agreement, all TT401 development and commercialization rights will be transferred to Transition. Transition, whose shares slumped more than 32% to C$1.06 on the news, says it is now unencumbered to advance TT401 on its own or with a third party.

TT401 is a once-weekly administered oxyntomodulin analog, with dual agonist activity on the GLP1 and glucagon receptors. TT401 is the most clinically advanced drug candidate among the new class of GLP1-glucagon receptor dual agonists, according to Transition. The product profile for this class of diabetes drug candidates is to provide type 2 diabetes individuals with blood-glucose control and greater weight loss than GLP1 single agonists.