Eli Lilly, Chugai enter into license pact for diabetes med

Chugai Pharmaceutical Co., Ltd. and Eli Lilly and Company today announced they have entered into a license agreement for OWL833, Chugai’s oral non-peptidic GLP-1 receptor agonist. OWL833 is a Phase 1-ready asset that is being studied for the treatment of type 2 diabetes. Under the terms of the agreement, Lilly will receive worldwide development and commercialization rights to OWL833. Chugai will receive an upfront payment of $50M and is eligible for milestone payments based on achievement of certain predetermined milestones. If the molecule is successfully commercialized, Chugai would also be eligible for royalty payments. There will be no change to Chugai’s consolidated financials forecast for the fiscal year ending December 2018 as a result of this transaction. This transaction will be reflected in Lilly’s reported results and financial guidance according to Generally Accepted Accounting Principles. There will be no change to Lilly’s 2018 non-GAAP earnings per share guidance as a result of this transaction. This transaction is subject to potential competition authority clearances and other customary closing conditions.
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