Takeda Pharmaceutical Company Limited and the biopharmaceutical company, Theravance Biopharma, have formed a global license, development and commercialization agreement for TD-8954, a selective 5-HT4 receptor agonist being investigated for potential use in the treatment of gastrointestinal motility disorders, including enteral feeding intolerance (EFI).

TD-8954 is being developed for the short-term use with EFI to achieve early nutritional adequacy in critically ill patients at high nutritional risk, an indication for which the compound received US Food and Drug Administration (FDA) fast track designation.

Theravance Biopharma will receive an upfront cash payment of $15 million and will be eligible to receive success based development and sales milestone payments as well as double digit royalties on worldwide net sales by Takeda. The first $110 million of potential milestones are associated with the development, regulatory, and commercial launch milestones for EFI or other intravenously dosed indications. The transaction is expected to close during the second calendar quarter of 2016 and is subject to customary closing conditions and clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Source: Theravance Biopharma