NeuroSearch has signed an agreement with Eli Lilly and Company to form a three-year drug discovery and development alliance to investigate a defined number of undisclosed ion channel targets for their potential in treating various central nervous system (CNS) disorders. The aim of the collaboration is to discover and develop new medicines based on novel approaches to specific ion channel modulation. The collaboration will comprise intellectual property and know-how from both NeuroSearch and Lilly.
Under the terms of the agreement, NeuroSearch is eligible to receive up to USD 13 million (DKK 75.9 million) from Lilly in upfront fees and research funding over the next three years, of which USD 5 million (DKK 29.2 million) will be paid up front. Lilly will also make a USD 17 million (DKK 99.2 million) equity investment in NeuroSearch.
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.
Flemming Pedersen, CEO of NeuroSearch commented, "We are very proud to have agreed on this broad based collaboration with Lilly for the discovery and development of new and better medicines based on novel approaches to ion channel modulation - being one of NeuroSearch's 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."
William Chin, Lilly vice president, discovery research and clinical investigation commented, "We are excited to partner with NeuroSearch, whose expertise in ion channel modulation will bolster our efforts to discover and develop promising CNS therapies. The equity stake we are taking in NeuroSearch is also an excellent example of our corporate strategy as a fully integrated pharmaceutical network (FIPNet), where we are collaborating with researchers beyond our walls to deliver improved outcomes to individual patients."