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news.Eli Lilly and Company (Lilly) and AC Immune have signed a license and collaboration agreement, potentially worth around CHF1.89bn ($1.9bn), for research and development of tau aggregation inhibitor small molecules for the treatment of neurodegenerative diseases like Alzheimer’s disease (AD).
Image: AC Immune scientist working in laboratory. Photo: courtesy of AC Immune.
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The partners will combine the Morphomer platform technology of the Switzerland-based AC Immune with the clinical development expertise and commercial capabilities of Lilly in central nervous system disorders to develop the potential drugs.
The collaboration will mainly focus on ACI-3024, the Swiss biopharma company’s lead molecule, which has shown tau aggregation inhibition in preclinical models.
AC Immune CEO Andrea Pfeifer said: “Lilly’s substantial experience in neurology, and particularly in Alzheimer’s disease, is a major validation of our small-molecule platform for CNS therapeutics.
“It also demonstrates the potential of our pre-clinical assets and adds substantial value to our pipeline.”
As per the agreement terms, AC Immune will be paid CHF80m ($80.7m) upfront along with $50m (CHF49.5m) in exchange for a note, convertible to equity at a premium.
The Swiss firm will also be eligible for potential near-term development milestones up to CHF60m ($60.5m) along with about CHF1.7bn ($1.71bn) in other potential development, regulatory and commercial milestones to go along with tiered royalty payments.
An initial Phase 1 development of the Morphomer tau aggregation inhibitors will be carried out by AC Immune. Lilly, on its part, will fund and carry out further clinical development.
As per the terms, the US pharma major will get worldwide commercialization rights for the tau aggregation inhibitors for the treatment of Alzheimer’s disease.
The Swiss firm has retained certain development rights in orphan indications and co-development and co-promotion options in certain indications outside Alzheimer’s.
Lilly neurodegeneration and pain research vice president Mark Mintun said: “Lilly is an industry leader in Alzheimer’s research, with numerous ongoing scientific programs that target suspected causes of the disease, including amyloid plaques and tau tangles.
“This agreement with AC Immune represents another opportunity to hopefully make progress against this devastating disease, and we look forward to together bringing tau aggregation inhibitors into clinical development.”
The transaction would need clearance under the Hart-Scott-Rodino Antitrust Improvements Act apart from satisfying other customary closing conditions.
