Eli Lilly and Company (LLY) entered into a co-discovery and co-development agreement with privately held Immunocore Limited for the research and development of new T cell-based cancer treatments.
The companies plan to use Immunocore's Immune Mobilising Monoclonal T-Cell Receptor Against Cancer (ImmTAC) technology. ImmTACs have demonstrated potential to direct T cells to specifically target cancerous cells without damaging healthy cells. We believe Immunocore’s technology will help Eli Lilly in developing immuno-oncology therapies.
As per the terms of the agreement, Eli Lilly will make an upfront payment of $15 million to Immunocore on a per program basis for the discovery of novel ImmTACs against jointly selected cancer targets. Post discovery, Eli Lilly will be offered a preclinical candidate package to develop and potentially commercialize. If Eli Lilly accepts this package, it will be obligated to pay an opt-in fee of $10 million to Immunocore.
Immunocore will have the option to continue co-development with Eli Lilly on a cost-sharing and profit-sharing basis. However, if Immunocore does not exercise this option, it will be eligible to receive milestone and royalty payments.
We note that several big players in the heath care sector are looking to develop immuno-oncology therapies. Last month, Pfizer Inc. (PFE) entered into an agreement with a France-based biopharmaceutical company, Cellectis, to develop chimeric antigen receptor T-cell (CAR-T) immunotherapies directed at select targets.
Eli Lilly carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include AbbVie Inc. (ABBV), AstraZeneca (AZN) and Pfizer. All these stocks hold a Zacks Rank #2 (Buy).
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