Lilly in-licenses chronic pain drug candidate

US pharma major Eli Lilly (NYSE: LLY) has signed a license agreement with Asahi Kasei Pharma (TYO: 3407) to acquire exclusive rights for AK1780 from the Japanese firm.

AK1780 is an orally bioavailable P2X7 receptor antagonist that recently completed Phase I single and multiple ascending dose and clinical pharmacology studies. P2X7 receptors have been consistently implicated in neuroinflammation, a driving force in chronic pain conditions.

Under the terms of the deal, Lilly will be responsible for future global development and regulatory activities for AK1780. Lilly will pay Asahi Kasei an upfront payment of $20 million and Asahi Kasei Pharma may be eligible for up to $210 million in potential development and regulatory milestones. Asahi Kasei Pharma will retain the right to promote AK1780 in Japan and China (including Hong Kong and Macau). If AK1780 is successfully commercialized, Asahi Kasei would be eligible for up to $180 million in potential sales milestones, as well as tiered royalties ranging from the mid-single to low-double digits.