Eli Lilly forms JV BioCritica, to focus on sepsis drug Xigris

US drug major Eli Lilly (NYSE: LLY) has signed agreements with private investors Care Capital and NovaQuest Capital to establish BioCritica, a newly-formed and privately-held biotechnology company.

BioCritica, based in Central Indiana, will initially focus on the continued US development and commercialization of already marketed Xigris (drotrecogin alfa [activated]), Lilly's drug for severe sepsis. BioCritica intends to ultimately build a broad portfolio of innovative, hospital-based critical care medicines.

As part of a licensing agreement, BioCritica will acquire the US development and commercialization rights to Xigris and will also receive the rights to potentially acquire several critical care compounds currently in preclinical development at Lilly. The collaboration also includes a supply agreement, a services agreement and an option for BioCritica to potentially acquire the development and commercialization rights to Xigris outside the USA at a later date. In return, Lilly will receive royalties on future US sales of Xigris and will also receive an equity stake in BioCritica. Specific financial terms of the transaction are not being disclosed.