AlzeCure Pharma has received the full USD 10 million upfront payment from Eli Lilly following the collaboration and licensing agreement for the Alzheimer’s project Alzstatin, including the drug candidate ACD680.
The company said all conditions for completion of the transaction have now been fulfilled and the initial deal is complete.
The payment does not result in any dilution for shareholders. AlzeCure noted that the agreement also includes specified development and commercial milestone payments, as well as royalties in the mid‑single‑digit % range on future product sales.
The total value of the deal, excluding royalties, may exceed USD 1 billion. Lilly will assume global rights to Alzstatin and responsibility for continued clinical development and commercialisation of ACD680.
Martin Jönsson, CEO of AlzeCure Pharma, said: “Lilly’s selection of our Alzstatin platform confirms the quality of the research we have conducted over many years, and the payment significantly strengthens our financial position.”
He added: “At the same time, I would like to emphasize that this is not the end point of our work in Alzheimer’s disease. We will continue to be active in both the Alzstatin and NeuroRestore projects.”
Jönsson explained: “In parallel, we are now also stepping up our investments in our pain portfolio, led by TrkA-NAM and ACD440. AlzeCure is, and will remain, a company with a broad presence in both Alzheimer’s disease and pain.”
Alzstatin ACD680 is a gamma‑secretase modulator that reduces production of the harmful amyloid‑beta protein Aβ42, which forms the building blocks of amyloid plaques in the brains of patients with Alzheimer’s disease. The compound also increases production of shorter, non‑toxic Aβ proteins Aβ37 and Aβ38, which may help limit plaque formation.
The transaction was completed following approval by Swedish authorities under regulations governing the screening of foreign direct investments and acquisitions.
