Agreement calls for $6 million to be paid once certain developmental and regulatory goals are met.
Forbes Medi-Tech sold its pharmaceutical assets and San Diego business operations to Transition Therapeutics for $1 million. Transition also agreed to pay up to $6 million in cash or shares in fees based on developmental and regulatory milestones.
Forbes’ R&D work centers on compounds against diabetes and inflammatory lung disease and is at the preclinical stage. The pipeline consists of three separate drug compound classes for the treatment of diabetes and one being evaluated in asthma, COPD, and pulmonary arterial hypertension.
Forbes originally acquired these pharmaceutical assets in October 2006 as part of its acquisition of Therapei Pharmaceuticals. In May of this year, Forbes reported that it would restructure the business to focus on the nutraceutical franchise and discontinue pharmaceutical development activities.
Forbes will pay 20% of what it receives from Transition to the former Therapei shareholders in cash and common shares of Forbes.