Zosano Pharma and Eli Lilly and Company Enter Into Exclusive Licensing Agreement for Zosano's ZP-PTH Product Candidate

Zosano Pharma Corporation (Zosano) and Eli Lilly and Company

today announced that they have entered into an exclusive agreement to develop ZP-PTH, Zosano's proprietary formulation of parathyroid hormone 1-34 (PTH) using Zosano's microneedle patch system for the treatment of osteoporosis patients, globally. Zosano has completed a Phase 2 study of ZP-PTH for the treatment of severe osteoporosis, and plans to conduct Phase 3 development. Lilly logo Under the terms of the agreement, Zosano has granted Lilly an exclusive worldwide license to commercialize ZP-PTH. Lilly will make an equity investment of up to $15 million in Zosano concurrent with the consummation of Zosano's initial public offering of equity securities, and additionally make payments upon achievement of certain regulatory and sales milestones totaling up to $300 million for regulatory approvals and up to $125 million for sales milestones. Zosano is also eligible to receive double-digit royalties on sales of products in major markets and will receive reimbursement of all manufacturing costs. Pending successful clinical testing outcomes and regulatory approval of ZP-PTH, Lilly will be responsible for commercialization of the product. Zosano will be responsible for funding and developing the product, including clinical, regulatory and manufacturing scale-up activities. Zosano will also manufacture the product and provide commercial product supply to Lilly. "The treatment of osteoporosis has advanced significantly in recent years, and if approved Zosano's microneedle patch system could offer a potentially innovative way to deliver this important medicine," said David A. Ricks, President, Lilly Bio-Medicines and Lilly Senior Vice President. "Zosano shares our commitment to making life better for the tens of millions of people with osteoporosis around the world, and we look forward to helping advance this potential innovation to improve the patient's experience." "We are delighted to have Lilly, a global leader in the field of osteoporosis, as our partner as we advance clinical development of ZP-PTH, one of our lead clinical compounds," stated Vikram Lamba, Chief Executive Officer of Zosano. "The product, if approved, could help patients suffering from osteoporosis to get a room temperature stable PTH patch for self-administration, without the need for a subcutaneous injection."