Biolojic Inks Research And Licensing Pact With Eli Lilly For Diabetes Antibody Therapies

Eli Lilly and Co (NYSE: LLY) and Biolojic Design Ltd have entered into a research collaboration and license agreement to discover and develop antibody-based therapy for diabetes.
The agreement will leverage Biolojic's AI-based multibody platform. Specific targets to be studied in the collaboration were not disclosed.
Under the terms of the agreement, Lilly will pay research fees associated with the collaboration, and additionally, Biolojic will receive up to $121 million in milestone payments.
Lilly will invest in a promissory note that may be convertible into Biolojic equity at a future date.
Biolojic is also eligible to receive tiered royalties in the low- to mid-single digits on product sales arising out of the agreement.
There will be no change to Lilly's 2021 non-GAAP EPS guidance as a result of this transaction.
Price Action: LLY shares are up 1.29% at $209.71 in the premarket trading on the last check Tuesday.