Key Moments
- AlzeCure Pharma (ST:ALZCUR) shares jumped 301.4% on Tuesday after announcing a collaboration and out-licensing agreement with Eli Lilly and Company (NYSE:LLY).
- The Swedish biotech is set to receive a $10 million upfront payment, with total deal value excluding royalties potentially surpassing $1 billion.
- Lilly will obtain global rights to Alzstatin ACD680, a gamma-secretase modulator targeting amyloid-beta proteins implicated in Alzheimer’s disease.
AlzeCure Stock Explodes on Lilly Partnership
AlzeCure Pharma (ST:ALZCUR) saw its share price surge 301.4% on Tuesday after unveiling a collaboration and out-licensing agreement with Eli Lilly and Company (NYSE:LLY) centered on AlzeCure’s Alzheimer’s candidate Alzstatin ACD680.
Deal Structure and Financial Terms
Under the newly announced agreement, the Swedish biotechnology company is set to receive an upfront payment of $10 million. In addition to this initial sum, the structure includes development and commercial milestone payments, along with tiered mid-single digit royalties on future sales.
AlzeCure indicated that the total potential value of the transaction, excluding royalty payments, may surpass $1 billion.
| Component | Details |
|---|---|
| Upfront payment | $10 million |
| Milestones | Development and commercial milestones |
| Royalties | Tiered mid-single digit royalties on sales |
| Total potential deal value (excl. royalties) | May exceed $1 billion |
Global Rights to Alzstatin ACD680
As part of the collaboration, Lilly will obtain worldwide rights to Alzstatin ACD680. The compound is described as a gamma-secretase modulator developed to lower production of the harmful amyloid-beta protein Aβ42, which forms amyloid plaques in the brains of patients with Alzheimer’s disease.
Alzstatin ACD680 is also designed to boost the generation of shorter, benign amyloid-beta variants, Aβ37 and Aβ38. These shorter proteins may limit the aggregation of Aβ42 and the accumulation of damaging plaques.
Management Commentary on the Agreement
“The agreement with Lilly is an important milestone for AlzeCure and Alzstatin,” said Martin Jönsson, CEO of AlzeCure.
Johan Sandin, Chief Scientific Officer at AlzeCure, highlighted that gamma-secretase modulators emerging from the Alzstatin platform are small-molecule drugs and emphasized that their mechanism of action has a strong genetic connection to the disease.
Closing Conditions and Regulatory Approvals
Completion of the transaction remains subject to standard closing conditions. These include clearance by Swedish authorities under foreign direct investment regulations.
AlzeCure’s Therapeutic Focus
AlzeCure develops drug candidates targeting diseases of the central nervous system, concentrating on Alzheimer’s disease and pain. The company’s shares are listed on Nasdaq First North Premier Growth Market.
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