Perrigo transfers ELND005 assets; buys OTC products

Drugmaker Perrigo (NYSE: PRGO; TASE) has entered into a series of agreements with existing collaboration partner, Transition Therapeutics (Nasdaq: TTHI), to progress the clinical development of ELND005 (Scyllo-inositol) in a number of important indications including Alzheimer's disease, bipolar disorder and Down syndrome.

As part of the transaction, Transition Therapeutics will acquire all of the shares of a wholly-owned, indirect Irish subsidiary of Perrigo which has present day responsibilities for carrying out all development activities associated with ELND005. Additionally, affiliates of Perrigo will make a $15 million investment in return for 2,255,640 common shares of Transition Therapeutics and will be eligible to receive royalties and milestone payments should ELND005 be commercialized. As of closing Friday (February 28), Transition Therapeutics and its subsidiaries will become responsible for all ongoing development activities and costs associated with ELND005.

Perrigo chairman and chief executive Joseph Papa stated: "We are delighted to be strengthening our partnership with Transition Therapeutics today and believe this transaction enhances the opportunity for success of the ELND005 program given Transition's long history with the molecule and focus on innovative science. Additionally, this transaction illustrates Perrigo's continued commitment to focus its efforts, energy and resources on opportunities and development projects that are core to our business and mission of providing quality, affordable healthcare products to consumers around the globe."