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Lilly and TransPharma Medical Announce Licensing and Development Agreement
Date:6/12/2008

Lilly Gains Access to Transdermal PTH Program for Osteoporosis

INDIANAPOLIS, Ind. and LOD, Israel, June 12 /PRNewswire-FirstCall/ -- Eli Lilly and Company (NYSE: LLY) and TransPharma Medical Ltd. today announced that the two companies have entered into a licensing and development agreement related to TransPharma's ViaDerm-hPTH (1-34) product for the treatment of osteoporosis. The product, which is administered transdermally using TransPharma's proprietary technology, is currently in Phase II clinical testing.

Under the terms of the agreement, Lilly will obtain exclusive worldwide rights to TransPharma's ViaDerm-hPTH (1-34) product and will also gain non-exclusive access to TransPharma's ViaDerm drug delivery system. TransPharma will receive a $35 million upfront payment, and may also receive development and sales milestones, as well as royalties on sales if a transdermal PTH product is successfully commercialized. TransPharma and Lilly will both fund and participate in Phase II clinical development activities. Thereafter, Lilly will be responsible for further development activities and the potential commercialization of any transdermal PTH products. Other terms of the deal were not disclosed.

The transaction is expected to become effective in either June or July of 2008, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act. At closing, Lilly would expect a $0.02 per share charge to earnings for acquired in-process research and development.

"This agreement expands the scope of our osteoporosis program with a novel, patient-centered approach that builds upon our success with Evista and Forteo," commented Dr. Gwen Krivi, vice president of Lilly Research Labs and global brand developm
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SOURCE Eli Lilly and Company
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