Date: 2017-06-08
Type of information: Development agreement
Compound: Dual Amylin Calcitonin Receptor Agonists (DACRAs) including KBP-042, KBP-089 and KBP-056.
Company: Eli Lilly (USA - IN) KeyBioscience (Switzerland)
Therapeutic area: Metabolic diseases
Type agreement: development
Action mechanism:
- Dual Amylin Calcitonin Receptor Agonist (DACRA). The dual activation of calcitonin and amylin receptors is thought to improve insulin sensitivity, suppress food intake, reduce fat deposition, improve blood glucose levels and cause weight reduction.
Disease: metabolic diseases such as type 2 diabetes
Details:
- • On June 8, 2017, Eli Lilly and KeyBioscience have agreed to a new collaboration focused on the development of Dual Amylin Calcitonin Receptor Agonists (DACRAs), a potential new class of treatments for metabolic disorders such as type 2 diabetes.
- The collaboration includes access to the DACRA platform with multiple molecules including KBP-042, KBP-089 and KBP-056. KeyBioscience has initiated Phase 2 development with KBP-042. Other assets included in the collaboration, engineered for differences in effect or potency, range from Phase 1 to pre-clinical.
- This transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Subject to the closing of this transaction, Lilly expects to incur an acquired in-process research and development charge to earnings in 2017 of approximately $0.03 per share. The company's reported earnings per share guidance in 2017 is expected to be reduced by the amount of the charge. There will be no change to the company's non-GAAP earnings per share guidance as a result of this transaction.
Financial terms:
- Under terms of the agreement, Lilly will receive worldwide rights to develop and commercialize these molecules. In exchange for these rights, KeyBioscience will receive an initial payment of $55 million and is eligible for additional potential development, regulatory, and commercialization milestones, as well as tiered royalty payments on future sales.
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