Lilly announces strategic collaboration with KeyBioscience

Collaboration to focus on a potential new class of treatments for metabolic disorders.

The collaboration includes access to the DACRA platform with multiple molecules including KBP-042, KBP-089 and KBP-056. KeyBioscience has initiated Phase II development with KBP-042. Other assets included in the collaboration, engineered for differences in effect or potency, range from Phase I to pre-clinical.

Under terms of the agreement, Lilly will receive worldwide rights to develop and commercialize these molecules. In exchange for these rights, KeyBioscience will receive an initial payment of $55 million and is eligible for additional potential development, regulatory, and commercialization 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," said Morten Karsdal, chairman of the board, KeyBioscience AG. "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."

The dual activation of calcitonin and amylin receptors is thought to improve insulin sensitivity, suppress food intake, reduce fat deposition, improve blood glucose levels and cause weight reduction.

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