Investing.com -- AlzeCure Pharma (ST:ALZCUR) shares soared 301.4% on Tuesday following the announcement of a collaboration and out-licensing agreement with Eli Lilly and Company (NYSE:LLY) for its Alzheimer’s project Alzstatin ACD680.
The Swedish biotech company will receive an upfront payment of $10 million, along with development and commercial milestones, and tiered mid-single digit royalties on sales. The total deal value, excluding royalty payments, may exceed $1 billion.
Under the agreement, Lilly will acquire global rights to Alzstatin ACD680, a gamma-secretase modulator designed to reduce production of the harmful amyloid-beta protein Aβ42, which forms amyloid plaques in the brains of Alzheimer’s patients. The compound is also designed to increase production of shorter, benign Aβ proteins, Aβ37 and Aβ38, which may reduce the aggregation of Aβ42 and the build-up of harmful plaques.
"The agreement with Lilly is an important milestone for AlzeCure and Alzstatin," said Martin Jönsson, CEO of AlzeCure.
Johan Sandin, Chief Scientific Officer at AlzeCure, noted that gamma-secretase modulators developed within the Alzstatin platform are small-molecule drugs with a mechanism that has a strong genetic link to the disease.
The transaction is subject to customary closing conditions, including approval by Swedish authorities under foreign direct investment regulations.
AlzeCure develops drug candidates for central nervous system diseases with a focus on Alzheimer’s disease and pain. The company is listed on Nasdaq First North Premier Growth Market.
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