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Lilly Takes Over Work On New Diabetes Drug

Eli Lilly and Co. will pay Canadian drug developer Transition Therapeutics Inc. $7 million and take over the development of a potential diabetes treatment heading into mid-stage clinical testing.

If the treatment works could Transition Therapeutics receive up to $240 million in additional payments, plus royalties.

The experimental treatment is being developed to treat type 2 diabetes and accompanying obesity. 

Type 2 diabetes is also known as “adult onset” and comes later in life as compared to Type 1 or “juvenile” diabetes.

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