Lilly and Lycia Therapeutics enter strategic collaboration to discover and develop novel lysosomal Targeting Chimera (LYTAC) degraders
INDIANAPOLIS and SOUTH SAN FRANCISCO, California, 25 August 2021 / PRNewswire / – Eli Lilly and Company (NYSE: LLY) and Lycia Therapeutics, Inc. today announced a multi-year collaborative research and licensing agreement focused on the discovery, development and commercialization of novel, targeted therapies using Lycia’s proprietary lysosomal targeting chimera, or LYTAC, a protein degradation technology.
Lycia uses its next-generation degradation approach to target the untapped extracellular proteome, including cell surface receptors and secreted proteins. The LYTAC platform can enable the development of several therapeutic modalities, including antibodies and small molecules, with the potential to inhibit many targets previously thought to be insoluble in a range of therapeutic areas and diseases.
Under the terms of the agreement, the companies will use Lycia’s LYTAC platform to discover and develop novel degraders for up to five targets aimed at addressing key unmet medical needs in Lilly’s therapeutic areas, including immunology and pain. Lilly will be solely responsible for the preclinical and clinical development of the candidates and will receive an exclusive worldwide license to market potential drugs resulting from the agreement.
“This collaboration with Lycia reinforces Lilly’s strategy of using innovative new technology to treat challenging disease areas, such as immunology and pain,” said Ajay Nirula, MD, Ph.D., vice president of immunology at Lilly. “We believe that Lycia’s technology can allow us to develop targeted therapies that were not previously feasible and to make advancements for patients in areas where unmet needs are high.”
âWe are extremely pleased to establish this strategic collaboration with Lilly, a global leader in therapeutic innovation,â said Trombley Aetna Wun, Ph.D., President and CEO of Lycia. âWith our differentiated LYTAC platform for targeted degradation of extracellular proteins, we look forward to collaborating with Lilly to advance new therapies against challenging targets in underserved disease areas, while simultaneously advancing our internal pipeline of therapies. first-class LYTAC-based. “
Lycia will receive an upfront payment of $ 35 million. The business is also eligible to receive more than $ 1.6 billion in potential milestone payments based on the achievement of pre-defined preclinical, development and commercial milestones, as well as mid-to-low double-digit tiered royalties on sales resulting from the agreement.
This transaction will be reflected in Lilly’s reported results and financial guidance in accordance with generally accepted accounting principles (GAAP). There will be no change in Lilly’s non-GAAP earnings per share guidance for 2021 as a result of this transaction.
About Lycia Therapeutics, Inc.
Lycia Therapeutics, Inc. is a biotechnology company using its proprietary Lysosomal Targeting Chimeras (LYTAC) platform to discover and develop first-class therapeutics that degrade extracellular and membrane proteins that cause a range of difficult-to-disease diseases. treat, in particular cancers and autoimmune diseases. Based at South San Francisco, Lycia was created in 2019 within the Inception Therapeutics Discovery Engine of founding investor Versant Ventures in collaboration with the academic founder Carolyn Bertozzi, Ph.D., professor of chemistry and HHMI researcher at Stanford University. For more information, please visit www.lyciatx.com.
About Eli Lilly and Company
Lilly is a global healthcare leader who combines attention and discovery to create medicines that improve the lives of people around the world. We were founded over a century ago by a man determined to create high quality medicines that meet real needs, and today we remain true to that mission in all of our work. Around the world, Lilly employees strive to discover and bring life-changing medicines to those in need, improve understanding and management of disease, and give back to communities through philanthropy and volunteering. To learn more about Lilly, visit us at www.lilly.com. C-LLY
Lilly’s forward-looking statement
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) regarding the benefits of a collaboration between Lilly and Lycia Therapeutics, Lilly’s research and development strategy, and potential payments to Lycia as part of the collaboration and reflects Lilly’s current beliefs and expectations. However, as with any such endeavor, there are substantial risks and uncertainties in the process of drug research, development and commercialization. Among other things, there can be no assurance that Lilly will realize the expected benefits of the collaboration, that the collaboration will produce commercially successful products, or that Lilly will execute its strategy as intended. For a more in-depth discussion of these risks and uncertainties that could cause actual results to differ from Lilly’s expectations, please see Lilly’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission. United States. Lilly does not undertake to update any forward-looking statements.
SOURCE Eli Lilly and company