Transition Thera modifies Alzheimer's drug deal with Elan; King re-submits Remoxy NDA

Toronto, Canada-based Transition Therapeutics (TSX: TTH) has agreed to modify its collaboration with Irish firm Elan agreement for the development and commercialization of the Alzheimer’s disease drug candidate ELND005.

Under the terms of the modification, in lieu of a contractually required Phase III milestone payment, Transition will receive from Elan a payment of $9 million at the time of signing and will be eligible to receive $11 million on the commencement of the next ELND005 clinical trial.

Transition will also be eligible for an aggregate of $93 million in additional regulatory and commercial launch-related milestone payments plus tiered royalties ranging from 8% to 15% based on net sales of ELND005 should the drug receive the necessary marketing approvals. As the accord is now a royalty arrangement, Transition will no longer fund the development or commercialization of the drug and will relinquish its 30% ownership of ELND005 to Elan.