Under an exclusive global licensing and research collaboration, the companies will involve in the assessment of up to four novel preclinical targets detected by Sitryx. The new targets may help develop potential new medicines for autoimmune diseases.
Lilly immunology vice president Dr Ajay Nirula said: “As Lilly seeks to develop new and unique medicines for people suffering with autoimmune diseases, we are actively exploring a variety of scientific approaches both in our own labs and with external partners.”
As per terms of the deal, Sitryx will secure an upfront payment of $50m, as well as Lilly will make a $10m equity investment in the biopharmaceutical company.
Sitryx is also provided with an option to secure potential development milestones up to $820m and commercialisation milestones and royalty payments on potential sales in the mid- to the high-single-digit range.
The deal allows Lilly to secure an exclusive and worldwide licence from Sitryx to develop and commercialise up to four novel immunometabolism targeted therapeutics, including Sitryx’s two major projects.
Both firms will enter into a five-year research collaboration to extend support for the development of therapeutics.
Sitryx will take responsibility for drug discovery, and Lilly will provide required funds, as well as manages the clinical development and commercial phase of the collaboration. The deal is subject to customary closing conditions.
Sitryx CEO Dr Neil Weir said: “We are excited to partner with Lilly, one of the global leaders in the field of immunology, to pursue the discovery of novel targets and the development of innovative therapies for autoimmune and inflammatory diseases in the fast-emerging area of immunometabolism.”
In January this year, Eli Lilly agreed to acquire US-based biopharmaceutical company Dermira in an all-cash transaction valued at around $1.1bn.
Based in Menlo Park of California, Dermira is involved in the development of novel therapies to treat patients with chronic skin conditions.