Lilly, Sitryx Form $880-M Licensing and Research PactBy
Eli Lilly and Company and Sitryx, an Oxford, UK-based biopharmaceutical company focused on developing therapeutics in immuno-oncology and immuno-inflammation, have entered a licensing pact in a deal worth up to $880 million ($50 million upfront, $10 million in equity investments, and up to $820 million in milestones) for the development of potential new medicines for autoimmune diseases.
Sitryx is focused on ways to regulate cell metabolism to develop disease-modifying therapeutics in immuno-oncology and immuno-inflammation. The collaboration will study up to four novel preclinical targets identified by Sitryx that could lead to potential new medicines for autoimmune diseases.
Under the agreement, Sitryx will receive an upfront payment of $50 million, and Lilly will make a $10 million equity investment in Sitryx. Sitryx will be eligible to receive potential development milestones up to $820 million as well as commercialization milestones and royalty payments on potential sales in the mid- to high-single digit range. In return, Sitryx will grant Lilly a worldwide license to develop and commercialize up to four preclinical immunometabolism-targeted therapeutics, including Sitryx’s two lead projects. Lilly and Sitryx will establish a five-year research collaboration to support the development of the therapeutics, with Sitryx responsible for drug discovery while Lilly will fund and manage the clinical development and commercial phase of the.
The transaction is subject to customary closing conditions.