CommercialEli Lilly Secures Global Rights to AlzeCure Alzheimer’s Drug...

Eli Lilly Secures Global Rights to AlzeCure Alzheimer’s Drug Candidate in Deal Worth Over $1 Billion

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Eli Lilly has entered into a collaboration and out-licensing agreement with AlzeCure Pharma to acquire global rights to an experimental Alzheimer’s disease treatment in a deal that could exceed $1 billion in total value.

The agreement covers Alzstatin ACD680, a small-molecule drug candidate that is currently in preclinical development. Under the terms of the deal, AlzeCure will receive an upfront payment of $10 million. The Swedish biotechnology company is also eligible for development and commercial milestone payments that could take the total value of the agreement beyond $1 billion. In addition, AlzeCure could receive tiered mid-single-digit royalties on future sales of the treatment.

AlzeCure develops small-molecule drug candidates for central nervous system diseases, with a focus on Alzheimer’s disease and pain. Through the agreement, Lilly obtains worldwide rights to ACD680.

The drug candidate is designed to target the production of amyloid-beta protein Aβ42, which is associated with Alzheimer’s disease. Aβ42 forms the building blocks of amyloid plaques found in the brains of patients with the condition. According to the companies, ACD680 aims to reduce the production of Aβ42 while increasing levels of amyloid-beta proteins Aβ37 and Aβ38.

In addition to lowering Aβ42 production, the treatment is designed to increase Aβ37 and Aβ38, which AlzeCure described as benign proteins. The company said these proteins may also contribute to reducing Aβ42 levels and limiting harmful plaque accumulation in the brain.

The treatment is based on a gamma-secretase modulator approach. Lilly is licensing the candidate as part of the agreement announced by the companies.

Martin Jönsson, chief executive officer of AlzeCure, said the potential applications of the compounds may extend beyond treating Alzheimer’s disease. He stated that the Alzstatin compounds are intended to counteract the re-accumulation of harmful amyloid buildup in the brain and may have future preventive uses.

“In the long term, these compounds may also serve as a preventive treatment to prevent the development of Alzheimer’s disease,” Jönsson said.

The transaction comes as Lilly continues its work in Alzheimer’s disease. The company’s primary asset in the field is Kisunla, which was approved in 2024. According to GlobalData managing neurology analyst Philippa Salter, Kisunla could generate $3.8 billion in sales by 2033. GlobalData also expects the Alzheimer’s market to increase eightfold in value by 2034.

Kisunla has also faced scrutiny. In 2024, The New York Times reported that Lilly did not inform patients participating in a Kisunla trial of the results of genetic tests used to identify individuals at higher risk of developing Alzheimer’s disease. The decision was questioned by some experts, according to the report.

Lilly has continued to make changes within its Alzheimer’s programs. Last year, the company discontinued eperognastat, an oral O-GlcNAcase anti-tau agent, after a Phase 2 trial found that the candidate failed to slow clinical decline in patients with early symptomatic Alzheimer’s disease.

The company has also pursued additional partnerships. In April, Lilly paid $12.5 million to Swiss biotechnology company AC Immune to expand an existing Alzheimer’s disease collaboration. That agreement followed an upfront payment of $81 million in 2018 for a small-molecule treatment designed to inhibit tau aggregation in Alzheimer’s patients.

Eli Lilly Expands Alzheimer’s Portfolio

Eli Lilly has strengthened its position in the Alzheimer’s disease market by securing global rights to an investigational drug candidate developed by AlzeCure Pharma. The agreement, which could exceed $1 billion in total value through upfront payments and milestone-based incentives, reflects Eli Lilly’s continued commitment to advancing treatments for neurodegenerative diseases.

The deal adds another promising asset to the growing neuroscience pipeline of Eli Lilly, a company that has increasingly focused on developing innovative therapies for patients affected by Alzheimer’s disease and other neurological disorders.

Details of the Billion-Dollar Agreement

Under the terms of the partnership, Eli Lilly will obtain worldwide development and commercialization rights to the Alzheimer’s drug candidate. The collaboration allows Eli Lilly to leverage its global clinical development capabilities while supporting the continued advancement of the therapy through future clinical studies.

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