Eli Lilly has expanded its relationship with Abbisko Therapeutics, committing up to $1.9 billion to get the Chinese biotech to apply its drug discovery and early development capabilities to multiple targets.
Abbisko partnered with Lilly in 2022 to collaborate on a small molecule drug candidate. While Abbisko mainly focuses on cancer, the biotech describes (PDF) the P151 drug candidate co-owned with Lilly as a cardiometabolic program. The company’s in-house preclinical pipeline includes a GIPR obesity program and a STAT6 project focused on eczema and lung diseases, plus a slate of solid tumor candidates.
The expanded relationship broadens Lilly’s exposure to Abbisko’s capabilities, although details of what the companies will collaborate on are scarce. Abbisko will work on multiple targets chosen by Lilly. The partners have yet to disclose the targets or the therapeutic areas covered by the agreement.
Abbisko will perform discovery and early development work on programs against Lilly’s targets. Assigning those tasks to the Shanghai-based biotech positions Lilly to benefit from the fast pace of early development in China. Last month, Bristol Myers Squibb and Pfizer struck deals to funnel certain internal programs through the early development capabilities of Chinese partners.
Lilly is paying an upfront fee of undisclosed size to Abbisko. Beyond that, Abbisko is in line to receive up to $1.9 billion in development, regulatory and commercial milestones and tiered royalties on annual net sales.
The agreement continues the breakneck dealmaking pace set by Lilly, which has deep pockets because of the success of its GLP-1 drugs. In the past month, Lilly has struck deals to buy three vaccine developers for up to $3.8 billion and neuroscience startup 4E Therapeutics for an undisclosed amount, while inking licensing pacts with AlzeCure, Ascidian Therapeutics, Haisco Pharmaceutical and Hanmi Pharm.
Lilly is also in pole position to acquire capsid delivery, zinc finger and modular integrase platforms, plus a prion disease program. Sangamo is selling the assets as part of its bankruptcy process. Lilly is the stalking horse bidder for the assets.