Eli Lilly (NYSE:LLY) on Sunday announced a drug discovery agreement with Hong Kong-listed InSilico that carries a potential aggregate value of roughly $2.75 billion, according to an exchange filing.
Under the terms disclosed, InSilico will receive an initial upfront payment of $115 million. The firm is eligible to receive further payments tied to development and commercial milestones that, if earned, could bring the total consideration to approximately $2.75 billion. The arrangement also provides for tiered royalties on any future sales of resulting products, the filing said.
As part of the pact, Eli Lilly will obtain exclusive worldwide rights to manufacture and sell oral therapies across multiple therapeutic areas. Those treatments are to be discovered using InSilico's artificial intelligence model, Pharma.AI, per the filing. The companies will co-operate on multiple research and development programs that will focus on targets selected by Lilly.
The exchange filing sets out the financial structure of the agreement but does not disclose whether or when milestone payments will be achieved. It also does not specify the exact number of programs covered or the timing for any potential development milestones or product launches.
Below are the main elements disclosed in the filing:
- Upfront payment: InSilico to receive $115 million immediately under the agreement.
- Milestone payments: Additional payments are contingent on the achievement of development and commercial milestones and could raise the deal value to about $2.75 billion.
- Royalties: The deal includes tiered royalties on future sales of any resulting therapies.
- Rights and scope: Lilly will hold exclusive global manufacturing and sales rights for oral treatments discovered with Pharma.AI, across multiple therapeutic areas.
- Collaboration focus: R&D programs will target molecules or targets selected by Lilly, with joint work between the companies.
The filing provides the framework and financial ceilings of the collaboration but leaves open the realization of milestone payments and the ultimate commercial success of any therapies developed through the partnership. The announcement confirms the involvement of AI-driven discovery tools in the identification of therapeutic candidates, naming Pharma.AI as the platform to be used.
All terms and descriptions above are drawn from the companies' exchange filing and the announcement made on Sunday. The filing is the source of the payment figures and the described rights and responsibilities of each party.