Eli Lilly and Company LLY announced that it has entered into an exclusive license and collaboration agreement with Korea-based global pharmaceutical company, Hanmi Pharmaceutical Co., Ltd.
The agreement primarily relates to the development and commercialization of Hanmi's oral Bruton's tyrosine kinase (BTK) inhibitor HM71224 for the treatment of autoimmune and other diseases.
As per the terms of the agreement, Eli Lilly will obtain worldwide rights, except in China, Hong Kong, Taiwan and Korea, to the candidate for all indications. It will be responsible for the development, regulatory, manufacturing and commercial leadership for the molecule in its own territories. In exchange, Hanmi will receive an initial payment of $50 million and is eligible for milestone payments of up to $640 million.
In addition, Hanmi would be eligible for tiered double-digit royalty payments if the BTK inhibitor is successfully commercialized.
The candidate is ready to enter phase II studies and the companies plan to investigate it for the potential treatment of rheumatoid arthritis, lupus, lupus nephritis, Sjögren's syndrome and other related conditions.
We note that Eli Lilly is looking forward to build a portfolio in immunology through its own research and key collaborations, such as the recent one with Hanmi. With generic threat looming on some of its key products, Lilly has been actively pursuing acquisitions and in-licensing deals to boost its product portfolio and pipeline over the past few years.
Eli Lilly currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are ANI Pharmaceuticals, Inc. ANIP, Cytokinetics, Inc. CYTK and Horizon Pharma plc HZNP. All three carry a Zacks Rank #1 (Strong Buy).
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