Vanda Pharmaceuticals Inc. (VNDA) said it has acquired an exclusive world-wide license from Eli Lilly and Co. (LLY) to develop and commercialize a small molecule neurokinin 1 receptor, or NK-1R, antagonist for all human indications.
As per the terms of the agreement with Eli Lilly, Vanda Pharma will pay an initial license fee of $1 million and will be responsible for all development costs. Eli Lilly is also eligible to get extra payments on the basis of achievement of specified development and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. These milestones include $4 million for pre-NDA approval milestones and up to $95 million for future regulatory approval and sales milestones.
Vanda Pharma stated that in 2012, it plans to initiate and complete the technology transfer activities and further examine the clinical and commercial profile of VLY-686. This strategic evaluation will further inform potential indications for an early development clinical program, noted the company.
by RTT Staff Writer
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