$74 Million Deal For Neurocrine Biosciences

Eli Lilly has signed an agreement with Neurocrine Biosciences in which Neurocrine could receive up to $74 million to develop new drugs for Alzheimer's disease and obesity. Under the terms of the five-year deal, Neurocrine will receive $22 million in initial fees, with the remainder of the money tied to development and regulatory milestones.

The program is centering on corticotrophin-releasing factor and related compounds, a deficiency of which is thought to be linked to both these diseases. One member of the class, urocortin, has been found to be a powerful appetite suppressant which can raise the metabolic rate. Research shows that this approach may also improve memory and cognition in Alzheimer's disease patients, by normalizing CRF levels in certain areas of the brain.