Lilly Expands ALS Portfolio with $415M Alchemab Deal

Eli Lilly has recently expanded its efforts to tackle amyotrophic lateral sclerosis (ALS) by entering into a licensing agreement with Alchemab Therapeutics, a U.K.-based biotech company. This collaboration aims to develop an early-stage therapy for ALS, further bolstering Lilly's pipeline in dealing with this neurodegenerative disease. Although exact financial details of the agreement remain undisclosed, the deal is estimated to be potentially worth up to $415 million. This amount includes an initial payment to Alchemab, alongside future payments contingent on reaching specific developmental and commercialization milestones. Additionally, Alchemab is set to receive royalties should their collaborative asset successfully reach the market.

This partnership marks Eli Lilly's second recent venture into ALS therapeutic development. Last year, the company joined forces with QurAlis, investing $45 million upfront and offering potential milestone and royalty payments totaling up to $577 million. This previous collaboration focused on QRL-204, an antisense oligonucleotide designed to correct a protein malfunction integral to ALS pathology.

The focus of Lilly and Alchemab's recent agreement is ATLX-1282, an investigational antibody aimed at targeting UNC5C, a protein associated with various neurodegenerative diseases. ATLX-1282 is considered a first-in-class therapy and is prepared for an investigational new drug (IND) application. The partners plan to progress ATLX-1282 for ALS and potentially other neurodegenerative disorders. Initially, Alchemab will guide the molecule through its early Phase I development. Subsequently, Eli Lilly will assume responsibility for further clinical trials, regulatory processes, and commercialization efforts.

This deal builds on the existing relationship between Lilly and Alchemab, who initially collaborated in January to address ALS. Though financial terms of the initial agreement were not disclosed, it involved utilizing Alchemab's technology platform to identify and develop up to five innovative therapies for ALS. The current deal is distinct but complements their prior collaboration.

Eli Lilly's recent strategic moves extend beyond ALS as the company actively seeks to expand its portfolio across various therapeutic areas. Earlier this year, Lilly entered a $780 million licensing agreement for Mediar Therapeutics’ treatment of idiopathic pulmonary fibrosis. Additionally, Lilly signed a potential $2.5 billion deal with Scorpion Therapeutics to develop a PI3Kα inhibitor for breast cancer and other solid tumors.

In February, Eli Lilly continued its aggressive pursuit of partnerships by engaging with South Korea's OliX Pharmaceuticals and Australia's AdvanCell for advancements in cardiometabolic and cancer treatments, respectively. Furthermore, last month saw Lilly secure a licensing agreement for a proprietary AAV vector capsid from Sangamo Therapeutics. This deal involved an $18 million upfront payment, with the possibility of up to $1.4 billion linked to achieving certain milestones.

These strategic collaborations reflect Lilly's commitment to expanding its therapeutic capabilities and addressing unmet needs in various medical fields, with a particular focus on neurodegenerative diseases like ALS. By forging partnerships with innovative biotech companies, Lilly aims to accelerate the development and availability of groundbreaking therapies to improve patient outcomes.