Strategic collaboration announced between Lilly and KeyBioscience

The collaboration between Eli Lilly and Company and KeyBioscience will focus on developing a potential new class of treatments for metabolic disorders, such as type 2 diabetes, called dual amylin calcitonin receptor agonists (DACRAs), the companies reported.

Under the terms of the agreement, Lilly will receive the worldwide rights to develop and commercialise the molecules within the DACRA platform, including KBP-042, KBP-089 and KBP-056, which range from pre-clinical to Phase I and II in development. In return for the worldwide rights, KeyBioscience will receive an initial payment of $55 million and is eligible for additional potential development, regulatory and commercialisation milestones, as well as tiered royalty payments on future sales.

“We are extremely excited about the promise of this new mechanism, which could potentially improve insulin sensitivity, reduce weight and improve blood glucose control,” explained Morten Karsdal, chairman of the board, KeyBioscience. “The dual activation of the calcitonin and amylin receptors is exciting research in the diabetes space. We look forward to partnering with Lilly to advance this important work.”

It is thought that by activating both calcitonin and amylin receptors insulin sensitivity will be improved — suppressing food intake, reducing fat deposition, improving blood glucose levels and causing weight reduction.

Enrique Conterno, president, Lilly Diabetes and Lilly USA, said: “This is an exciting opportunity. Our strategic collaboration with KeyBioscience will open the door to a potentially innovative treatment approach for people with type 2 diabetes and, possibly, other metabolic conditions.”

This transaction is subject to clearance and customary closing conditions.