Objective of the project is to use power of the body’s own immune system to attack cancer cells and discover possible new treatment options for cancer patients.
By using their scientific expertise, the two firms will jointly work to identify and validate new tumor targets and their corresponding T cell receptors (TCRs) in one or more types of cancer.
The tumor targets and TCRs are later engineered and developed into potent and selective cancer therapies.
As part of the deal, BioNTech will receive a $30m signing fee and for each potential medicine it could receive more than $300m in development, regulatory and commercial milestones.
If successfully commercialized, BioNTech will also be eligible to secure tiered royalty payments up to double-digits.
Lilly Oncology Research vice-president Dr Greg Plowman said: "In the past few years, we’ve seen some amazing breakthroughs in immuno-oncology; however, we believe these are just the tip of the iceberg.
"Lilly’s partnership with BioNTech represents the next wave of cancer immunotherapy and is focused on the identification of functional T cell receptors that can be used to redirect a patient’s natural immune system to fight cancer."
Additionally, Lilly will make a $30m equity investment in BioNTech’s subsidiary, Cell & Gene Therapies, which specializes in the research and development of TCR and chimeric antigen receptor immunotherapeutics.