Lilly, Lycia in $1.6-Bn Pact Based on Protein-Degradation Technology
Eli Lilly and Company and Lycia Therapeutics, a South San Francisco, California-based bio/pharmaceutical company, have entered into a multi-year research collaboration and licensing agreement for the discovery, development, and commercialization of targeted therapeutics using Lycia’s lysosomal targeting chimera (LYTAC) protein degradation technology, in a deal worth up to $1.6 billion ($35 million upfront and up to $1.6 billion in potential milestone payments).
The LYTACs platform is used to discover and develop therapeutics that degrade extracellular and membrane-bound proteins, including cell-surface receptors and secreted proteins. The LYTAC platform may enable the development of several therapeutic modalities, including antibodies and small molecules, with the potential to inhibit targets previously considered intractable across a spectrum of therapeutic areas and diseases.
Under the agreement, the companies will use Lycia’s LYTAC platform to discover and develop degraders for up to five targets that aim to address Lilly’s therapeutic areas of focus, including immunology and pain. Lilly will be responsible for preclinical and clinical development of candidates and will receive an exclusive global license to commercialize medicines resulting from the agreement.
Lycia will receive an upfront payment of $35 million. The company is also eligible to receive over $1.6 billion in potential milestone payments based on the achievement of prespecified preclinical, development, and commercial milestones, as well as tiered royalties from mid-single to low double-digits on sales resulting from the agreement.