PeptiDream inks news research deal with Lilly

Japanese biotech PeptiDream (TYO: 4587) saw its shares gain more than 20% to 1,965 yen today, after it announced a new research collaboration and license agreement with US pharma major Eli Lilly (NYSE: LLY) focused on the discovery and development of novel peptide drug conjugates (PDCs).

Under the accord, PeptiDream will use its proprietary peptide discovery platform system (PDPS) technology to identify high affinity macrocyclic peptide ligands to Lilly-elected targets of interest, capable of delivering a Lilly conjugated payload to certain cells and tissues of interest to Lilly. PeptiDream will lead peptide discovery and optimization efforts, and Lilly will lead payload discovery and optimization efforts.

Lilly will be responsible for all development aspects of any PDC products arising from the collaboration. The new agreement builds on the long collaborative relationship between the companies, with the first collaboration and license deal in December 2013, followed by the non-exclusive license of PeptiDream’s proprietary PDPS technology in March 2016, which specifically excluded work on PDC programs.