Yahoo Finance Lilly In-Licenses Private Biotech's Non-Opoid Pain Candidate
Eli Lilly and Company LLY announced that it is in-licensing the worldwide rights to a non-opioid pain candidate from Massachusetts-based privately held Centrexion Therapeutics Corporation for an upfront payment of $47.5 million. The move will strengthen Lilly’s pain pipeline portfolio.
Centrexion’s small molecule somatostatin receptor type 4 (SSTR4) agonist, CNTX-0290, is being evaluated in a phase I study for the potential non-opioid treatment of chronic pain conditions.
Other than the upfront payment, Lilly is entitled to pay up to $575 million as development and regulatory milestones. Upon successful commercialization of the candidate, Centrexion will be eligible to receive $375 million as sales-based milestones and high-single-digit-to-low-double-digit royalties. On approval, both companies may choose to co-promote the drug in the United States. The transaction is subject to customary closing conditions.
Shares of Lilly have inched up 0.9% so far this year, outperforming the industry’s increase of 0.7%.
We would like to remind investors that pain management has been a key area of focus for Lilly. The company along with Pfizer PFE is developing NGF inhibitor, tanezumab (subcutaneous), in late-stage studies for osteoarthritis pain, chronic low back pain and cancer pain.
In February 2019, both Lilly and Pfizer announced that a higher dose of tanezumab met the primary endpoint in a phase III study, evaluating it for patients with chronic low back pain.
Both companies also successfully completed the two late-stage studies, evaluating tanezumab in patients with osteoarthritis pain. Notably, Regeneron Pharmaceuticals, Inc. REGN and Teva Pharmaceutical Industries Limited TEVA are also developing a NGF antibody, fasinumab, for treating osteoarthritis pain.
Meanwhile, in its pain portfolio, Lilly launched Emgality (galcanezumab), its CGRP antibody, for the preventive treatment of migraine in the United States last September. The drug generated revenues of $14.2 million in the first quarter of 2019, which is more than $4.9 million recognized in the previous quarter.
Lilly is also looking to expand the label of Emgality injection as a preventive treatment of episodic cluster headache in adult patients. In March 2019, the FDA granted a priority review to this regulatory application.
Zacks Rank
Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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