Lilly and MacroGenics sign teplizumab accord

Drug major Eli Lilly and fellow USA-based and MacroGenics 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 autoimmune diseases. As part of the deal, Lilly will acquire the exclusive rights to teplizumab, which is currently being studied in the PROTEGE trial, a global pivotal Phase II/III study for individuals with recent-onset type 1 diabetes.

Under the terms of the deal, MacroGenics will receive an initial payment of $41.0 million, as well as $3.0 million in other committed funds, and may also get up to $200.0 million in potential development milestones for the type 1 diabetes indication. If the agent is successfully commercialized, its originator may receive up to $250.0 million in potential sales milestones, as well as escalating royalties on sales commensurate with the current stage of development. In addition, MacroGenics would have the option to co-promote teplizumab for certain indications in the USA. Lilly may make an equity investment in MacroGenics of up to $10.0 million in the company's next private financing round or initial public offering.