Transition to acquire Ellipsis Neurotherapeutics for C$13.2 million

By Angela McDaniels

Seattle, Feb. 27 - Transition Therapeutics Inc. said it signed a share purchase agreement under which it will acquire the outstanding shares of Ellipsis Neurotherapeutics Inc. for C$13.2 million in Transition common shares. The transaction is scheduled to close on March 10.

Transition currently owns 33.2% of Ellipsis's outstanding shares, according to a company news release.

Transition said the key asset covered by the transaction is Ellipsis's lead molecule AZD-103, a potential treatment for Alzheimer's disease that Transition has studied in preclinical trials for the last 15 months under a service agreement between the companies.

Under the share purchase agreement, Ellipsis shareholders will be entitled to receive AZD-103-related milestone payments that could reach C$12.8 million and a royalty of up to 1% on net sales of the drug.

Transition is a Toronto-based biopharmaceutical company.

Ellipsis is a privately held biopharmaceutical company also based in Toronto that develops therapeutics for neurodegenerative diseases.

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