Eli Lilly and Co (NYSE:LLY) and Topas Therapeutics have signed a multi-year research and development collaboration. The two are to work together on the selection of external antigens that induce inflammation and autoimmune disease in addition to collaborating on preclinical studies for identifying drug candidates.
Collaboration Agreement
Under the terms of the agreement, Topas will carry out pre-clinical proof-of-principal studies to come up with candidate drugs. Eli Lily will in return in-license and develop any candidates that come into being because of the collaboration. The giant drug maker is also to provide Topas Therapeutics R&D funding and compensations for any drug candidates it licenses.
The Hamburg-based biotech boasts of a technology platform that can induce antigen-specific immune tolerance while harnessing the liver’s natural immunology capabilities. The nanoparticle technology has also been found to be reliable in targeting autoimmune and inflammatory diseases by induction of antigen specific immune tolerance in the liver.
Topas already has a number of candidate peptides under development with most of them expected to enter preclinical trials next year for the treatment of multiple sclerosis. The company has also applied its novel technology for the treatment of type 1 diabetes and celiac disease.
“Topas has a very novel approach to immune tolerance induction, which we would like to see successfully applied to certain disease relevant antigens,” said Thomas Bumol, Eli Lily senior vice president of biotech and immunology research.
Migraine Drug Milestone
A collaboration with Topas is part of Eli Lilly new strategy that seeks to strengthen the current portfolio and pipeline of drugs. Last month its acute migraine candidate drug lasmiditan succeeded in a key late-stage study setting it on course for regulatory approval.
If approved, Lasmiditan will strengthen Eli Lily portfolio of migraine drugs that is currently made up of galcanezumab. The drug will also put the company on a collision course for market share with the likes of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and Allergan plc. Ordinary Shares (NYSE:AGN) which have similar drugs. Migraines cost the U.S economy about $36 billion in healthcare and lost productivity costs a year.
Eli Lily was down by $78.15 in Wednesday’s trading session to end the day at $78.15 a share.