Eli Lilly collaborates with AC Immune to develop Alzheimer’s treatment

Global pharmaceutical company Eli Lilly has entered into a licence and collaboration agreement with Swiss biotechnology company AC Immune.

Announced earlier today, December 12, the agreement will allow the two companies to research and develop tau aggregation inhibitor small molecules for the potential treatment of Alzheimer’s and other neurodegenerative diseases.

The collaboration will combine AC Immune’s patented Morphomer platform technology with Eli Lilly’s clinical development expertise and commercial capabilities in central nervous system (CNS) disorders. It will focus mainly on AC Immune’s lead molecule, ACI3024, which has demonstrated tau aggregation inhibition in preclinical models.

Under the terms of the agreement, AC Immune will receive an upfront payment of CHF80 million ($80.6 million) as well as $50 million “in exchange for a note, convertible to equity at a premium”.

AC Immune is also eligible to receive CHF60 million if it meets development milestones. Additionally, if further development, regulatory and commercial milestones are hit, the company can receive up to CHF1.7 billion as well as royalty payments.

As part of the agreement, AC Immune will conduct the initial phase of development of the Morphomer tau aggregation inhibitors, while Eli Lilly will fund and conduct further clinical development. In exchange, Eli Lilly will receive worldwide commercialisation rights for the tau aggregation inhibitors concerning Alzheimer’s.

Mark Mintun, vice president of neurodegeneration and pain research at Eli Lilly, said: “This agreement with AC Immune represents another opportunity to hopefully make progress against this devastating disease, and we look forward to together bringing tau aggregation inhibitors into clinical development.”

Andrea Pfeifer, CEO of AC Immune, said the partnership is “transformational” for the future of AC Immune, adding that: “Lilly’s substantial experience in neurology, and particularly in Alzheimer’s disease, is a major validation of our small molecule platform for CNS therapeutics.”

She added: “It also demonstrates the potential of our pre-clinical assets and adds substantial value to our pipeline. We look forward to working closely with Lilly in this exciting field over the coming years.”

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