Altea Therapeutics has entered into an agreement with Eli Lilly and Amylin Pharmaceuticals to develop and commercialise a novel daily transdermal patch delivering sustained levels of exenatide, utilising the Altea Therapeutics PassPort transdermal delivery system.

Under the terms of the agreement, Altea Therapeutics has granted Lilly and Amylin exclusive worldwide rights to develop and commercialise transdermal exenatide utilising the Altea Therapeutics proprietary PassPort transdermal delivery system. Lilly and Amylin will fund all product development, manufacturing and commercialisation activities for the product.

Altea CEO Eric Tomlinson said that the agreement was a validation of Altea’s transdermal patch technology.

“The technology is used for medicines that currently can be administered only by needle injection or infusion, including water-soluble proteins, carbohydrates, and small molecules,” Tomlinson said.

In addition, Altea Therapeutics will receive from Lilly and Amylin an upfront licence payment and may receive clinical, regulatory and sales milestones of up to $46m, and royalties on future product sales. As part of the agreement, an equity investment in Altea Therapeutics is included.

Altea Therapeutics, supported by Lilly and Amylin, recently completed an initial phase I clinical study of the exenatide transdermal patch in people with type 2 diabetes.