TransForm Earns Performance Milestone In Lilly Collaboration

, Inc. has received a $1 million performance milestone payment from its partner, and Company, under their collaboration.

The performance payment was contingent on TransForm attaining several critical success factors by the end of 2002 as outlined in the agreement.

TransForm and Lilly entered into their multi-year collaboration earlier in 2002 to enhance the process by which Lilly selects and optimizes early lead candidates.

Under the terms of the deal, TransForm is leveraging its expertise in form and formulation optimization utilizing high-throughput technology, sophisticated applied chemistry and state-of- the-art informatics to identify better forms and formulations for drug candidates in Lilly’s pipeline and to reintroduce solubility-limited candidates into development.

TransForm will earn milestones and royalties on products developed by Lilly that have benefited from TransForm’s technology, and may also have the right to participate in the development and commercialization of certain compounds resulting from the collaboration.

During the last eight months of 2002 alone, TransForm performed form or formulation related analyses on more than 100 Lilly drug candidates from two discovery programs, typically within a very rapid turnaround time.

“We are very pleased to have attained this important milestone in our Lilly collaboration,” noted Norman Selby, TransForm’s CEO.

“To make it happen, we had to modify some of our high-throughput technologies to work with the very small amounts of compound provided by Lilly, and to develop new capabilities to efficiently discover superior early animal formulations with pharmaceutically relevant excipient combinations.”

TransForm is reinventing the pharmaceutical industry’s approach to form and formulation, with a novel set of high- throughput automated platform technologies, powered by state-of-the-art informatics and a scientific and managerial team with deep experience in pharmaceuticals.

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