Vanda lands exclusive world-wide license for VLY-686 from Lilly
Vanda Pharmaceuticals, a biopharmaceutical company focused on central nervous system disorders, has acquired an exclusive world-wide license from Eli Lilly to develop and commercialize a small molecule neurokinin 1 receptor (NK-1R) antagonist for all human indications.
Vanda will pay Lilly an initial license fee of $1 million 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. These milestones include $4 million for pre-NDA approval milestones and up to $95 million for future regulatory approval and sales milestones.
NK-1R antagonists have been evaluated in a number of indications including 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 National Institutes of Health. In that study, VLY-686 was shown to reduce alcohol cravings and voluntary alcohol consumption among patients with alcohol dependence.
In 2012, Vanda intends 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.