Lilly Taps NeuroSearch for Preclinical Discovery Deal

Feb.18.09 | About: Eli Lilly (LLY)

Just a week after NeuroSearch failed a phase II pain trial (ABT-894), they’ve inked a collaboration which will focus on new CNS therapeutics based upon defined ion channel targets.

NeuroSearch is eligible to receive equity payments and research funding of up to USD 30 million over the three years of the alliance.

Terms

Upfront: $5M
Potential Research Funds: $8M
Equity: $17M
Milestones: Up to $320M if all drugs reach the clinic

NeuroSearch will be responsible for the drug discovery programmes under the collaboration and potentially early development of novel drug candidates. Lilly will have various options to exercise license rights to individual compounds covered by the agreement and related intellectual property. Upon exercise of license rights, Lilly will be responsible for all subsequent development and commercialisation activities. For each product, successfully developed and commercialized under the alliance, NeuroSearch may be entitled to milestone payments of up to USD 320 million (DKK 1,868.2 million) plus royalties on the product’s global sales.