Eli Lilly and Company
) entered into a co-discovery and co-development agreement with
privately held Immunocore Limited for the research and development
of new T cell-based cancer treatments.
The companies plan to use Immunocore's Immune Mobilising Monoclonal
T-Cell Receptor Against Cancer (ImmTAC) technology. ImmTACs have
demonstrated potential to direct T cells to specifically target
cancerous cells without damaging healthy cells. We believe
Immunocore's technology will help Eli Lilly in developing
As per the terms of the agreement, Eli Lilly will make an upfront
payment of $15 million to Immunocore on a per program basis for the
discovery of novel ImmTACs against jointly selected cancer targets.
Post discovery, Eli Lilly will be offered a preclinical candidate
package to develop and potentially commercialize. If Eli Lilly
accepts this package, it will be obligated to pay an opt-in fee of
$10 million to Immunocore.
Immunocore will have the option to continue co-development with Eli
Lilly on a cost-sharing and profit-sharing basis. However, if
Immunocore does not exercise this option, it will be eligible to
receive milestone and royalty payments.
We note that several big players in the heath care sector are
looking to develop immuno-oncology therapies. Last month,
) entered into an agreement with a France-based biopharmaceutical
company, Cellectis, to develop chimeric antigen receptor T-cell
(CAR-T) immunotherapies directed at select targets.
Eli Lilly carries a Zacks Rank #3 (Hold). Some better-ranked stocks
in the health care sector include
) and Pfizer. All these stocks hold a Zacks Rank #2 (Buy).
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