Eli Lilly (Lilly) has agreed to a one-year renewal of its drug discovery collaboration with Applied NeuroSolutions. Lilly is expected to pay $250,000 to Applied NeuroSolutions for the one-year collaboration renewal.
Earlier, on 28 November, 2006, Applied NeuroSolutions has signed an agreement with Eli Lilly to develop therapeutics to treat Alzheimer’s disease (AD). Reportedly, the original collaboration term was for three years, with two one-year options to extend the collaboration term at Lilly’s sole discretion. Lilly exercised the first one-year option.
As per the agreement, Applied NeuroSolutions was expected to receive $2m in cash, including an equity investment of $500,000, from Lilly, plus annual research and development support. In addition, Lilly will provide APNS with up to $10m to $20m per compound based on achievement of certain milestones. Royalties would be paid to Applied NeuroSolutions for any AD therapies brought to market that result from the collaboration.
Reportedly, Lilly was also expected to receive the exclusive worldwide rights to the intellectual property related to Applied NeuroSolutions’ expertise in understanding the molecular neuropathology of AD, as it pertains to the formation of neurofibrillary tangles.
Craig Taylor, president and CEO at Applied NeuroSolutions, said: “It is very exciting that Eli Lilly believes we are making sufficient progress in our drug discovery efforts to renew the collaboration for another year. The efforts of Peter Davies, our founding scientist, Lilly, and Applied NeuroSolutions have achieved internal milestones to date and we are hopeful that continued progress will lead to achievement of our first paid milestone from Lilly in 2010.”