Synthes and Eli Lilly to collaborate on osteoporosis treatments, including Forteo

Swiss medical device firm Synthes (SIX: SYST.VX) and US drug major Eli Lilly (NYSE: LLY) have signed an exclusive worldwide collaboration agreement to address the needs of patients who are cared for by orthopedic surgeons, including those with osteoporosis and bone fractures, including additional uses for the latter’s bone drug Forteo (teriparatide [rDNA origin] injection). Financial terms of the deal were not disclosed.

Synthes is currently the subject of a $21.3 billion takeover by US health care giant Johnson & Johnson (NYSE: JNJ) which has yet to complete, likely in the first half of next year (The Pharma Letter April 27).

The agreement allows for the joint development and licensing of early-stage compounds from Lilly to Synthes for use within orthopedic trauma, spine, craniomaxillofacial and reconstructive areas. These compounds have preclinical and in some cases clinical data packages, and have the potential to aid in the local treatment and regeneration of the skeleton. The two companies will jointly develop site-specific osteoinductive (ie, bone healing) products based on Synthes' biomaterials combined with Lilly's biologics or pharmaceuticals.