Eli Lilly & Co. (NYSE:LLY) announced Wednesday a collaboration agreement with privately-held biopharmaceutical company Sigilon Therapeutics to develop cell therapies for the treatment of type 1 diabetes or insulin-dependent diabetes.
Indianapolis-based Lilly is a global pharma company and a leader in diabetes care. Under terms of the agreement, Lilly will pay Siligon US$63mln upfront and make an undisclosed equity investment in the firm.
In return, Lilly will receive an exclusive worldwide licence to Siligon's Afibromer technology, which provides more natural ways of controlling chronic diseases. Lilly could also pay Siligon up to US$410mln for reaching development and commercialisation milestones, as well as royalties on future product sales.
After the submission of a new drug application, Lilly will be responsible for all clinical development and commercialisation costs. As a result of this transaction, Lilly will take a charge of US$0.05 cents a share in the second quarter for in-process research and development.
Lilly shares fell 0.6% in morning trade to US$77.08.