UPDATE: Lilly rekindles deal with Adocia to develop ultra rapid insulin

US pharma major Eli Lilly (NYSE: LLY) and French biotech firm Adocia (Euronext Paris: ADOC) have entered into a worldwide licensing collaboration focused on developing an ultra-rapid insulin, known as BioChaperone Lispro, for treatment in people with type 1 and type 2 diabetes. Adocia’s shares leapt 40% on the news, reaching 37.70 euros by 08.19 GMT.

BioChaperone Lispro relies on Adocia's proprietary BioChaperone technology and is currently in Phase Ib studies. Interestingly, last year Lilly terminated a 2011 licensing accord with Adocia for a formulation of fast acting insulin analog using the BioChaperone technology. Terms of the original accord included a $10 million up-front payment and up to $155 million more in milestones.

Asked to explain the reason for the company’s rekindling of the agreement, a spokesman for Lilly told TPL: “We evaluate our pipeline on a regular basis in order to best allocate our resources. In 2013, we had to make a difficult financial decision to discontinue our collaboration with Adocia based on resource allocation. Our current financial outlook now allows Lilly to collaborate with Adocia regarding BioChaperone Lispro. We look forward to working with Adocia to develop innovative solutions for people with diabetes.”