AlzeCure Pharma AB (publ) (“AlzeCure”) (FN STO: ALZCUR), which develops small-molecule drug candidates for CNS diseases with a focus on Alzheimer’s disease and pain, announced today that the company has entered into a collaboration and out-licensing agreement with the pharmaceutical company Eli Lilly and Company (“Lilly”) regarding the global rights to the Alzheimer’s project Alzstatin ACD680. AlzeCure will receive an upfront payment of $10 million USD, development and commercial milestones, and tiered mid-single digit royalties on sales. The total deal value, excluding royalty payments, may exceed $1 billion USD.
Alzstatin ACD680 is a gamma-secretase modulator that aims to reduce the production of the harmful amyloid-beta protein, Aβ42, which forms the building blocks of the amyloid plaques found in the brains of Alzheimer’s patients. In addition, ACD680 is designed to increase the production of shorter, benign Aβ proteins, Aβ37 and Aβ38, which may reduce the aggregation of Aβ42, thereby also reducing the build-up of harmful plaques in the brain.
“Gamma-secretase modulators, which we have developed within the Alzstatin platform, are small-molecule drugs where the mechanism has a strong genetic link to the disease,” says Johan Sandin, Chief Scientific Officer at AlzeCure Pharma.
“The Alzstatin compounds are hoped to be used to counteract re-accumulation of harmful amyloid in the brain. In the long term, these compounds may also serve as a preventive treatment to prevent the development of Alzheimer’s disease,” says AlzeCure’s CEO Martin Jönsson.
“The agreement with Lilly is an important milestone for AlzeCure and Alzstatin,” continues AlzeCure’s CEO Martin Jönsson.
The transaction is subject to customary closing conditions, including approval by Swedish authorities under foreign direct investment regulations.
