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Applied NeuroSolutions, Lilly Enter Drug Development Deal

Posted on: Tuesday, 28 November 2006, 12:01 CST

Eli Lilly has entered an agreement with biopharmaceutical company Applied NeuroSolutions for $2.5 million to develop therapeutics to treat Alzheimer's disease.

Lilly will pay Applied NeuroSolutions $2 million, including a $500,000 equity investment in the company and will receive annual research and development support as part of the deal. In addition, Lilly will provide Applied NeuroSolutions with up to $10 million to $20 million per compound. Royalties would be paid to Applied NeuroSolutions for any Alzheimer's therapies brought to market that result from the collaboration.

Lilly will gain the worldwide rights to the intellectual property related to Applied NeuroSolutions' expertise in neurofibrillary tangles which are the collections of protein that build up on neurons in Alzheimer's patients.

Applied NeuroSolutions has been applying this knowledge to develop diagnostic tools to identify Alzheimer's at the earliest stages, as well as discovering new targets that are crucial in developing effective compounds. This is a different approach to many Alzheimer's treatments that have traditionally been focused on a protein called amyloid beta.

"The agreement provides an exciting opportunity to expedite our collective efforts in the creation of effective Alzheimer's disease therapies," said Ellen Hoffing, president and CEO of Applied NeuroSolutions.

Source: Datamonitor

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