Nearly after a year of signing the agreement for drug development, Nicholas Piramal India Ltd (NPIL) is planning to in-license one more drug candidate from Eli Lilly and Co in the area of oncology or metabolic disorder.

The new molecule will be assigned to NPIL under the provision in the agreement, to extend the tie up for new drug development of four drug candidates in various therapeutic areas. The company, which has in-licensed and commenced research and development of Eli Lilly's new metabolic disorder drug molecule through the agreement signed in January 2007, is in advanced stage of negotiation with the partner to extend the agreement to develop a drug candidate either on oncology or metabolic disorder, informed sources close to the development.

"Talks are on the way to take up one more drug candidate for research and development in lines with the provisions of the agreement. The in-licensing of new molecule is expected within two to three months," the source told Pharmabiz.

The company will take up development of a drug candidate discovered and studied by Eli Lilly. NPIL will conduct further studies and development through three phases of trials up to the stage of marketing. The agreement is to serve as a prototype for joint development of several pre-clinical drug candidates from Lilly in multiple therapeutic areas.

In November 2007, NPIL has signed an in-licensing deal with Merck & Co Inc to carry out early discovery and development of two drug candidates in oncology, potentially worth maximum revenue of US $350 million. Interestingly, NPIL and Eli Lilly also have their expertise in oncology research, which seems to be explored in the near future, according to industry experts. The company's leading anticancer NCE drug, P-276, is in advanced stages of development and is counted as one among the prospective products to be launched by NPIL in 2010-11.

The NPIL-Lilly alliance model is designed to increase productivity in drug development by synergizing the unique strengths of both companies and equitably sharing risk and reward. The agreement offers a call-back payment, potential milestone payments of up to $100 million, and royalties on sales upon successful launch of the first compound for the Indian partner. NPIL will be responsible for the design and execution of the global clinical development programme, including IND-enabling non-clinical studies and human clinical trials up to phase III, according to the agreement.