Lilly and MacroGenics Announce Licensing and Collaboration...( Lilly to Acquire Phase III Molecule ...),Health

Lilly to Acquire Phase III Molecule Teplizumab for the Treatment of Type 1

Diabetes

Companies to Collaborate on the Development of Autoimmune Disease

Treatments

ROCKVILLE, Md., and INDIANAPOLIS, Oct. 18 /PRNewswire-FirstCall/ -- Eli Lilly and Company (NYSE: LLY) and MacroGenics, Inc. today announced that the two companies have entered into a global strategic alliance to develop and commercialize teplizumab, a humanized anti-CD3 monoclonal antibody, as well as other potential next generation anti-CD3 molecules for use in the treatment of autoimmune diseases. As part of the deal, Lilly will acquire the exclusive rights to the molecule. Teplizumab is currently being studied in the PROTEGE trial, a global pivotal Phase II/III clinical trial for individuals with recent-onset type 1 diabetes. MacroGenics will continue to oversee the PROTEGE trial.

Under the terms of the agreement, MacroGenics will receive an initial payment of $41 million, as well as $3 million in other committed funds. MacroGenics may also receive up to $200 million in potential development milestones for the type 1 diabetes indication. If teplizumab is successfully commercialized, MacroGenics may receive up to $250 million in potential sales milestones and would receive escalating royalties on sales commensurate with the current stage of development of the product. In addition, MacroGenics would have the option to co-promote teplizumab for certain indications in the U.S. Lilly may make an equity investment in MacroGenics of up to $10 million in the company's next private financing round or initial public offering. Lilly may also decide to pursue several additional indic
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