Diabetes drugs rights bought by Eli Lilly

A drug manufacturer announced, on Thursday of their intention to buy the rights to develop and commercialise certain diabetes treatments in the Transition Therapeutics Incs pipeline.
Eli Lilly will pay an estimated $7 million for rights to gastrin-based therapies which treat diabetes patients. The gastrin hormone stimulates the production of gastric acid.
An unnamed Transition Therapeutics drugs, TT-223 is still being tested.
The agreement means that Lilly will pay $7m at first and possibly another $130m if the drugs get to the sales stage after being fully developed. Royalties will also be received by Transition Therapeutics based on the sales of gastrin therapies if successful.
The two companies are taking part in the planned midstage clinic trial of the TT-223 in type 2 diabetes further development will be the responsibility of Lilly.