Lilly bolsters diabetes assets with $55m KeyBioscience deal

Eli Lilly has announced a strategic collaboration with KeyBioscience that sees the former company gain access to develop and commercialise multiple molecules that the latter company has discovered. KeyBioscience focuses on the development of Dual Amylin Calcitonin Receptor Agonists (DACRAs), which could become a new form of treatment for those living with type 2 diabetes.

In particular, the DACRA molecules have been shown to improve blood glucose control and to result in weight loss. The molecules work by increasing levels of amylin, a protein that regulates blood sugar levels, and calcitonin, a hormone that helps calcium homeostasis.

The portfolio that Lilly will be able to develop includes a variety of molecule candidates that range through from pre-clinical testing to Phase 2 stage. The winning combination of weight loss and improved control over blood sugar levels is a particularly attractive proposition that would fit neatly into Lilly’s existing diabetes portfolio.

The deal will see KeyBioscience receive $55 million up-front, with further milestones tied into the deal – the details of which neither company revealed.

"This is an exciting opportunity," said Enrique Conterno, President of Lilly Diabetes and Lilly USA. "Our strategic collaboration with KeyBioscience AG will open the door to a potentially innovative treatment approach for people with type 2 diabetes and, possibly, other metabolic conditions."

The deal comes only months after Lilly completed a deal to acquire CoLucid’s migraine drug in a deal that came close to the $1 billion mark. The two deals fulfils CEO David Ricks earlier comments that he would push the company to achieve more deals and partnerships, after this method of growth was notably absent from his predecessor’s strategy.