The patents cover the use of GLP-1 analogues alone or in combination with insulins for the treatment of type I diabetes.
Under the terms of the Agreement, Transition will issue to London Health Sciences Centre Research Inc (LHSCRI) a number of its shares having a value of $286,000 based on the value of the shares in the period from March 15 – March 21, 2006.
In addition, LHSCRI is entitled to receive milestone payments and royalties from the net sales of products covered by the patent portfolio.
“We are pleased to be able to license our GLP-1 intellectual property to a company such as Transition Therapeutics Inc,” said Dr Joseph Gilbert, vice-president of research, London Health Sciences Centre. “The existence of emerging Canadian biotechnology companies like Transition play an important function in the movement of early stage discoveries out of the laboratory for the benefit of patients.”