Lilly (LLY.US) invests heavily in new cancer treatment: $1.25B to develop molecular glue drugs with Magnet Bio

Biotechnology company Magnet Biomedicine announced on Friday that it has entered into a licensing agreement with Eli Lilly (LLY.US) worth up to $1.25 billion to co-develop cancer drugs using Magnet's TrueGlue discovery platform.

Under the terms of the agreement, Magnet will receive up to $40 million in upfront and near-term payments and equity as funding support for the companies to launch their research. The companies will use Magnet's TrueGlue platform to develop molecular glue therapies for cancer treatment.

In addition, Magnet is eligible to receive tiered royalties on global net sales and milestone payments of over $1.25 billion based on the achievement of development, regulatory and commercial milestones.

It is understood that Magnet's TrueGlue platform is designed to develop small molecules that can promote protein-protein interactions and generate clinically meaningful therapeutic responses in patients.

"Eli Lilly is committed to innovation and has deep expertise in bringing transformative medicines to patients, making it an ideal partner for Magnet as we together unlock the untapped potential of molecular glues," Magnet CEO Brian Safina said.