KeyBioscience Extends Strategic Collaboration with Lilly

KeyBioscience and Eli Lilly and Company have decided to broaden their collaboration on the development of Dual Amylin Calcitonin Receptor Agonists (DACRA), a novel class of potential treatments for obesity and related health issues. This collaboration will enable Eli Lilly to gain extended rights to KeyBioscience's DACRA platform, which includes a new molecule scheduled to enter a Phase 2 clinical trial this year. This study will target people with obesity and osteoarthritis (OA), enrolling 600 participants to assess both weight loss and the reduction of OA pain.

Under the new agreement terms, Eli Lilly will acquire global rights to develop and market DACRA molecules. In return, KeyBioscience will receive an initial payment and additional potential payments that could total up to USD 1.4 billion, contingent on achieving specific development, regulatory, and commercial milestones. Additionally, KeyBioscience will earn royalties on net sales, ranging from mid-single digits to low double digits.

Morten Karsdal, CEO of Nordic Bioscience, KeyBioscience’s parent company, expressed enthusiasm about the clinical program. He highlighted that DACRAs have shown substantial weight loss and improved glycaemic control in other Phase 2 trials for obese individuals. Karsdal also emphasized the molecule's high potency and low immunogenicity risk, expressing optimism about the continued collaboration with Eli Lilly.

Ruth Gimeno, Group Vice President of Diabetes, Obesity, and Cardiometabolic Research at Eli Lilly, noted that dual amylin-calcitonin receptor agonists are a promising new class of obesity treatments with potential applications in other health conditions. She welcomed the extended partnership with KeyBioscience and looked forward to exploring the clinical potential of DACRA molecules.

Obesity is a significant global health issue, with over a billion individuals affected worldwide, according to the World Health Organization (WHO). Despite evolving treatment options, there remains a substantial gap, particularly in addressing complications such as osteoarthritis. OA affects more than 600 million people globally, many of whom struggle with obesity. The condition causes severe joint pain and hampers mobility. Studies have shown that weight loss can significantly alleviate OA symptoms. DACRAs, as a potential new therapy, could provide a dual benefit by promoting weight loss and directly addressing the molecular pathways involved in OA progression.

KeyBioscience is a subsidiary of Nordic Bioscience, a Danish biotech company based in Copenhagen. Nordic Bioscience specializes in clinical research and precision medicine, utilizing unique biomarker technologies. Their combined expertise in preclinical and clinical research aims to facilitate faster and more efficient detection of potential clinical viability in drug candidates.