Eli Lilly to Collaborate with Hanmi Pharmaceutical on Autoimmune Treatment
Friday, March 20, 2015
Eli Lilly Co. agreed to collaborate with Hanmi Pharmaceutical Co. to develop Hanmi’s treatment for autoimmune diseases.
The companies will investigate whether the treatment, called HM71224, is effective at treating conditions such as rheumatoid arthritis and lupus. Lilly will receive world-wide rights for the molecule, except in China, Korea, Taiwan and Hong Kong.
Korea-based Hanmi will receive an initial payment of $50 million and can receive up to an additional $640 million if certain milestones are achieved. If the treatment is commercialized, Hanmi is eligible for tiered double-digit royalty payments.
“Significant unmet medical need exists in many prevalent autoimmune diseases where individual patient needs are not adequately being met with available treatments,” said Thomas Bumol, a Lilly senior vice president.
HM71224 has already demonstrated encouraging results in preclinical studies and a Phase I study in Europe, according to Gwan Sun Lee, Hanmi’s chief executive.
Lilly, like other pharmaceutical companies, is working to counter a wave of patent expirations—and resulting sales pressures—by broadening its research and business models. In February, the company reached separate pacts with Merck Co. and Bristol-Myers Squibb Co. to collaborate on trials for immunotherapy drugs.
Shares of Lilly, which were inactive premarket, have risen about 7% this year through Wednesday’s close.
wsj.com
