Transition Therapeutics has acquired an Irish domiciled company, the holder of all development and commercialization rights of neuropsychiatric drug candidate ELND005, which will become a subsidiary of Transition. Transition also announced a $15 million investment by Perrigo to acquire approximately 7% of Transition's common shares.

ELND005 is an oral drug candidate that is being evaluated in three studies: a phase II study for agitation and aggression in Alzheimer's disease, a phase II study for bipolar disorder and a phase IIa study in Down syndrome.

Perrigo also will be eligible to receive up to $40 million in approval and commercial milestone payments and a 6.5% royalty on net sales of ELND005 products and sublicense fees received.  

Going forward, the Irish subsidiary will be responsible for all future development and commercialization activities of the ELND005 drug candidate.

"ELND005 is a unique drug candidate that has been shown to have an acceptable safety profile in six clinical studies and reduced the emergence of multiple neuropsychiatric effects including agitation, aggression, depression and anxiety in a phase II clinical study,” said Tony Cruz, chairman and CEO of Transition. “By acquiring the ELND005 rights, Transition has the opportunity to complete the two current large phase II studies underway in agitation and aggression in Alzheimer's disease, and mood changes in bipolar disorder. This drug candidate acts through a distinct mechanism of action by reducing brain myo-inositol levels associated with mood/behavioral changes. We believe this approach provides a unique opportunity to achieve therapeutic benefit for patients with neuropsychiatric symptoms.”