Lilly Buys Seragen's IL-2 Infusion Toxin

Eli Lilly has signed a letter of intent with Seragen to acquire the development, distribution and marketing rights to Seragen's interleukin-2 fusion toxins worldwide except in certain Asian countries.

The exemption stems from a December 1993 Seragen agreement with Japanese firm Ajinomoto to grant it the option to become its partner for developing and marketing IL-2 fusion toxins in Japan, China, Taiwan and Korea.

Under the agreement, Lilly will make an initial payment to Seragen of $10 million, and $5 million as an advance against its purchase of bulk product from Seragen. Lilly will also pay an additional $10 million if certain regulatory milestones are met for the products. If Lilly decides to exercise its option to acquire rights to future fusion toxins for cancer therapy, the firm would pay an additional $5 million for each option and assume the costs.