Millennium Sets Up Subsidiary And Gets Funds From Lilly

Millennium Pharmaceuticals of the USA has formed a new subsidiary,Millennium BioTherapeutics, which will develop and commercialize therapeutic proteins, antibody therapy, gene therapy and antisense products.

Eli Lilly will make a $20 million equity investment in the new company in exchange for around 18% of the issued and outstanding shares of MBIO, with Millennium retaining around 82% of ownership. Furthermore, Lilly and Millennium have entered into a multiyear collaborative program for the discovery, development and commercialization of novel, therapeutic protein products.

MBIO has been created by Millennium agreeing to transfer to the new subsidiary its existing and certain future biotherapeutic product development rights. Also, 25 of the 40 employees currently working on Millennium's independent biotherapeutics discovery program will transfer to MBIO. MBIO will be headed by John Maraganore, who joins from Biogen as vice president and general manager.