Lilly and Deciphera in oncology development deal
This article was originally published in Scrip
Executive Summary
Lilly and Deciphera Pharmaceuticals are to study kinase inhibitors for potential first- and best-in-class anticancers in a deal worth up to $520 million. The two have signed a worldwide licensing agreement related to Deciphera's preclinical B-Raf kinase inhibitor programme, Phlomechanics, in four different project areas involving selective or multi-kinase targeted B-Raf inhibitors. B-Raf inhibitors are one of the most frequently mutated members of the kinase family across all cancers; the V600E mutant form in particular has been associated with increased tumour aggressiveness and decreased cancer rates. Lilly will make an up-front payment and provide research funding to Deciphera over the next two years. Deciphera could receive up to $130 million in development, regulatory and sales milestones for each of the projects. It will also be entitled to royalties on sales if a product is commercialised successfully. Lilly will gain exclusive worldwide rights to any products developed under the collaboration. The deal is another example of Lilly's efforts to boost its oncology portfolio, following its announcement that it was buying ImClone Systems (Scrip Online, October 7th, 2008).