DOW JONES NEWSWIRES 
 

Adolor Corp. (ADLR) has acquired from Eli Lilly & Co. (LLY) exclusive worldwide rights to a clinical-stage drug candidate aimed at treating gastrointestinal side effects of certain painkillers, for an upfront payment of $2 million.

Shares of Adolor rose 3% to $1.71 in after-hours trading, while Lilly's were inactive at $32.86.

Adolor also will pay royalties on net sales if the drug is approved from the Food and Drug Administration and up to about $70 million in milestone payments.

Adolor, a biopharmaceutical company that specializes in pain treatments, intends to develop the drug candidate, OpRA III, to treat opioid bowel dysfunction along with another possible drug. It will start clinical trials early next year.

"OpRA III has a unique profile with the potential to address the gastrointestinal disorders associated with the use of opioid analgesics," said Adolor Chief Executive Michael Dougherty.

In June, the company said it was cutting jobs and restructuring to concentrate on late-stage preclinical compounds, rather than early-stage programs. Its first commercial product, bowel-dysfunction treatment Entereg, was launched last year.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com