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news.Vanda Pharmaceuticals has gained an exclusive world-wide license from Eli Lilly and Company to develop and commercialize a small molecule neurokinin 1 receptor (NK-1R) antagonist for all human indications.
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As per the agreement, Vanda will pay an initial license fee of $1m to Eli Lilly and will be responsible for all development costs.
Lilly is also eligible to receive additional payments based upon achievement of specified development and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits.
The milestones include $4m for pre-NDA approval milestones and up to $95m for future regulatory approval and sales milestones.
NK-1R antagonists have been evaluated in indications such as chemotherapy-induced nausea and vomiting (CINV), post-operative nausea and vomiting (PONV), alcohol dependence, anxiety, depression, and pruritus.
VLY-686 (formerly known at Lilly as LY686017) has demonstrated proof-of-concept in alcohol dependence in a study published by the NIH.
In 2012, Vanda intends to initiate and complete the technology transfer activities and further examine the clinical and commercial profile of VLY-686.
The strategic evaluation is expected to further inform potential indications for an early development clinical program.
Vanda president and CEO Mihael Polymeropoulos said: "The licensing of VLY-686 is an important milestone for Vanda, as we continue to realize our vision of developing treatments to address unmet medical needs."