Dr. Tony Cruz reports

TRANSITION THERAPEUTICS ANNOUNCES INITIATION OF A PHASE 1 CLINICAL STUDY OF DIABETES DRUG CANDIDATE TT-401

Transition Therapeutics Inc.'s first patient has been dosed in a phase 1 clinical study of Type 2 diabetes drug candidate, TT-401. TT-401 is a once-weekly administered peptide being studied for its potential to lower blood glucose levels in patients with Type 2 diabetes and accompanying obesity.

Currently approved GLP-1 agonist therapies are a fast-growing therapeutic segment emerging as an important approach in the treatment of Type 2 diabetes. Next generation therapies for Type 2 diabetes are currently being studied in early clinical development for their potential to provide a superior product profile over current GLP-1 product offerings through improved efficacy, broader therapeutic application or less frequent administration. Preclinical data on TT-401 show potential for TT-401 to be administered once weekly and provide sustained glycemic control and other beneficial effects, including weight loss and improvements in lipid profile.

The phase 1 study will evaluate the safety, tolerability and pharmacokinetics of single ascending doses of TT-401 in healthy obese volunteers.

In March, 2010, Transition entered into a licensing and collaboration agreement with Eli Lilly and Company, where Transition acquired the rights to a series of preclinical Lilly compounds, including TT-401 for the treatment of Type 2 diabetes.

We seek Safe Harbor.