Under the terms of the agreement, Lilly will obtain exclusive worldwide rights to TransPharma’s ViaDerm-hPTH (1-34) product and will also gain non-exclusive access to TransPharma’s ViaDerm drug delivery system. TransPharma will receive a $35 million upfront payment, and may also receive development and sales milestones, as well as royalties on sales if a transdermal parathyroid hormone (PTH) product is successfully commercialized.
TransPharma and Lilly will both fund and participate in Phase II clinical development activities. Thereafter, Lilly will be responsible for further development activities and the potential commercialization of any transdermal PTH products.
The transaction is expected to become effective in either June or July of 2008, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act. At closing, Lilly would expect a $0.02 per share charge to earnings for acquired in-process R&D.