Eli Lilly & BioNTech Collaborate for Cancer Immunotherapies - Analyst Blog

Eli Lilly and CompanyLLY and BioNTech AG announced that they have signed a research collaboration agreement for the discovery of novel cancer immunotherapies.

Under this partnership, both companies will work on identifying and validating novel tumor targets and their corresponding T cell receptors (TCRs) in one or more types of cancer.

Terms of the Deal

Per the deal, Eli Lilly will make a $30 million equity investment in BioNTech's subsidiary, Cell & Gene Therapies GmbH, which specializes in the research and development of TCR and chimeric antigen receptor immunotherapeutics. Additionally, Eli Lilly will pay development, regulatory and commercial milestones of over $300 million for each potential therapy developed under this collaboration, apart from a signing fee of $30 million. Upon the successful commercialization of the drugs, BioNTech will be entitled to receive tiered royalty payments in up to double digits.

Eli Lilly has been actively pursuing in-licensing deals to boost its product portfolio and pipeline. In Mar 2015, the company announced two collaborations - an agreement with Hanmi Pharmaceutical to develop and commercialize Hanmi's oral Bruton's tyrosine kinase inhibitor, HM71224, which is being developed for the treatment of autoimmune and other diseases, and another with Innovent Biologics to develop and commercialize a portfolio of cancer treatments in China.

Late last year, the company had inked a deal with Adocia to develop an ultra-rapid insulin, BioChaperone Lispro, for the treatment of type I and type II diabetes.

Meanwhile, Eli Lilly is working on the development of its oncology pipeline comprising both small molecules and monoclonal antibodies for the treatment of various types of cancer including breast, colorectal, liver and non-small cell lung cancers.

Eli Lilly currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Anacor Pharmaceuticals, Inc. ANAC , Valeant Pharmaceuticals International, Inc. VRX and Actelion Ltd. ALIOF . All these stocks carry a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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