Evotec and Lilly ink drug discovery collaboration in metabolic diseases

German biotech Evotec (EVT: Xetra) has entered into a drug discovery collaboration with US pharm major Eli Lilly (NYSE: LLY) in the field of metabolic diseases with a focus on kidney diseases and diabetes.

The collaboration leverages Evotec's extensive experience and track record of delivering in the field of metabolic diseases, as well as its unique and extensive kidney disease patient database, to identify and validate promising novel targets for therapeutic intervention. Evotec will be responsible for the discovery of potential drug candidates for the treatment of diabetes and chronic kidney diseases from targets identified by Lilly or by Evotec. Lilly reserves the right to select up to five programs developed within this partnership and to continue with any subsequent development, clinical validation and commercialization.

Deal worth a potential $1 billion

The collaboration initially runs for a term of three years. In addition to an undisclosed upfront payment, Evotec will be eligible to receive success-based discovery development, regulatory and commercial milestone payments of up to $180 million per program, as well as tiered royalties on net sales of any products resulting from the collaboration, for a potential overall value up to $1 billion.