Lilly Group Partnering with California Company
(photo courtesy: Eli Lilly & Co.)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Loxo Oncology at Lilly has formed an exclusive collaboration with Kumquat Biosciences in California. Loxo, a research and development group of Eli Lilly and Co. (NYSE: LLY), says the partnership could ultimately be valued at more than $2 billion if certain milestones are met.
The multi-year collaboration will focus on the discovery, development and commercialization of potential novel small molecules that stimulate tumor-specific immune responses, according to Lilly. Kumquat will use its small molecule immuno-oncology platform to discover potential drug candidates, from which Lilly could select for further development and commercialization worldwide, except in Greater China.
“Using small molecule inhibitors to target specific tumor antigens in complex with the immune machinery presents a unique opportunity to stimulate an enhanced tumor-specific immune response,” said Jacob Van Naarden, chief executive officer of Loxo Oncology at Lilly. “We look forward to working with the accomplished Kumquat team to identify candidate medicines that interact with this target class.”
As part of the deal, Kumquat will receive $70 million in an upfront cash payment and an equity investment. The company will be eligible to receive more than $2 billion in milestone payments, as well as royalties on sales of commercialized products that come out of the collaboration.