AlzeCure Pharma has announced it has entered into an out-licensing and collaboration agreement with Eli Lilly regarding the global rights to the Alzheimer’s project Alzstatin ACD680, in a deal that could exceed $1bn.
AlzeCure said that it will receive an upfront payment of $10m, development and commercial milestones and tiered mid-single-digit royalties on sales.
Alzstatin ACD680 is a gamma-secretase modulator that targets the production of the harmful amyloid-beta protein, Aβ42, which forms the building blocks of the amyloid plaques found in the brains of Alzheimer’s patients.
In addition, ACD680 is designed to increase the production of shorter, benign Aβ proteins, Aβ37 and Aβ38, which may reduce the aggregation of Aβ42, thereby also reducing the build-up of harmful plaques in the brain.
"Gamma-secretase modulators, which we have developed within the Alzstatin platform, are small-molecule drugs where the mechanism has a strong genetic link to the disease," said Johan Sandin, Chief Scientific Officer at AlzeCure Pharma.
The Alzstatin compounds are hoped to be used to counteract the re-accumulation of harmful amyloid in the brain.
"In the long term, these compounds may also serve as a preventive treatment to prevent the development of Alzheimer’s disease," added AlzeCure’s CEO Martin Jönsson.
The agreement with Lilly is an important milestone for AlzeCure and Alzstatin.
The transaction is subject to standard closing conditions, including approval from Swedish authorities under foreign direct investment regulations.