Elan and Transition Therapeutics inked an exclusive, worldwide collaboration agreement for the joint development and commercialization of a therapeutic agent, AZD-103, for the treatment of Alzheimer’s disease. AZD-103 is a small molecule compound in Phase I development that acts by breaking down and preventing the assembly of beta amlyoid fibrils.
Under the terms of the agreement, Transition will receive upfront payments of $15 million: $7.5 million in 2006 and the remainder in 2007. Dependent upon the successful development, regulatory approval, and commercialization of AZD-103, Transition will be eligible to receive milestone payments of up to $185 million.
Elan and Transition will share the costs and operating profits of AZD-103 if successfully developed and commercialized. Each party’s cost share and ownership interest may vary throughout the term of the agreement dependant on certain elections that may be made during the development of AZD-103.