Lilly to boost biotech stake in NeuroSearch deal
pharmafile | February 17, 2009 | News story | Research and Development | Denmark, Europe, NeuroSearch
Lilly has signed a new deal with Danish biotech company NeuroSearch and increased its presence further in the biologics sector.
The two companies have announced a three-year drug discovery and development deal to research treatments for disorders of the central nervous system (CNS).
The collaboration will use intellectual property from both partners. Its terms will see NeuroSearch receive up to $13 million from Lilly in upfront fees and research funding over the next three years. Lilly will also make a $17 million equity investment in NeuroSearch.
William Chin, Lilly's vice president of discovery research and clinical investigation, said it was excited about the new partnership, which would bolster its efforts to discover and develop promising CNS therapies.
He said: "The equity stake we are taking in NeuroSearch is also an excellent example of our corporate strategy as a fully integrated pharmaceutical network, where we are collaborating with researchers beyond our walls to deliver improved outcomes to individual patients."
CNS therapy is an increasingly important field in the pharma industry, and the Neuroscience deal signals a growing ambition from Lilly to expand in biotechnology.
In October 2008 Lilly bought another biotech, ImClone, for a sum of $6.5 billion after outbidding Bristol-Myers Squibb. The acquisition helped Lilly increase its presence in oncology R&D, another increasingly important area.
Smaller company NeuroSearch has no marketed drugs yet. Its lead product is a phase III treatment for Huntingtons Disease, called ACR16. The first patients were dosed in April 2008 and the company say the trial is progressing satisfactorily.
Chief executive of the company Flemming Pedersen said NeuroSearch was proud to have agreed the collaboration with Lilly, particularly in one of its core areas of expertise.
"Our collaboration is structured to secure both a balanced risk sharing and very attractive long term revenue, if our efforts are successful, as well as significant near term financing to NeuroSearch."
NeuroSearch will be responsible for the drug discovery programmes under the collaboration, and potentially early development of new drug candidates. Lilly will be responsible for all subsequent development and commercialisation activities.
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