Transition, Elan amend ELND005 development, commercialization pact

As per the terms of the modification Elan will pay $9m to Transition at the time of signing the modified agreement and will also pay $11m upon the commencement of the next ELND005 clinical trial.

Additionally, Elan will pay around $93m 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 regulatory approvals for commercialization.

Based on studies in preclinical models of Alzheimer’s disease, ELND005 is believed to inhibit the aggregation (clumping) of amyloid-beta proteins in the brain thereby neutralizing the toxic effects of these aggregates on nerve cell membranes (synapses).