The agreement covers the late-stage development and commercialization of ATI-7505, a prokinetic agent in Phase II clinical trials for chronic constipation and functional dyspepsia.
Under the terms of the collaboration agreement between Procter & Gamble (P&G) and ARYx Therapeutics, the results from the just-completed TQT study qualified ARYx for the Tier 1, or highest, milestone payment from P&G.
The collaboration agreement provides P&G a 30 day option period from the lock of the database for the TQT study to cancel the collaboration or agree to pay ARYx the milestone payment provided for under the collaboration agreement.
P&G has exercised their option to cancel the agreement effective immediately. However, P&G has also been very supportive in agreeing to a transition plan for handing the program back to ARYx to allow it to pursue an optimal partnering package.
As part of the transition plan, the on-going Phase II studies in chronic constipation and functional dyspepsia will be terminated in an orderly method. No new patients will be enrolled and those currently on therapy will be withdrawn from the studies over the coming weeks. This will allow ARYx to continue to focus its resources on the on-going trials on ATI-5923 and ATI-2042.