Lilly, Kumquat Biosciences Team Up To Discover, Develop Immuno-Oncology Candidates

Loxo Oncology, a unit of Eli Lilly And Co LLY, and Kumquat Biosciences have announced an exclusive collaboration to discover, develop, and commercialize potential novel small molecules that stimulate tumor-specific immune responses.
Through the multi-year collaboration, Kumquat will utilize its small molecule immuno-oncology (IO) platform to discover the candidates, and Lilly has the option to select a certain number of drug candidates for further development and commercialization worldwide, excluding Greater China.
Kumquat has retained development and commercialization rights in Greater China for each of the drug candidates selected by Lilly.
Additionally, Kumquat has the option to co-develop and co-commercialize a certain number of the drug candidates selected by Lilly in the U.S.
Kumquat will receive $70 million consisting of a cash upfront payment and an equity investment.
It is also eligible to receive over $2 billion in potential milestone payments.
Price Action: LLY shares closed at $246.51 on Wednesday.