Precision BioSciences up after gene therapy pact with Eli Lilly

 

• Eli Lilly (NYSE:LLY) and Precision BioSciences (NASDAQ:DTIL) have entered into a research and license agreement to utilize Precision's ARCUS genome editing platform for potential therapies for genetic disorders, with an initial focus on Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets.
• ARCUS platform is derived from a natural genome-editing enzyme called I-CreI, a homing endonuclease that can be optimized to control for potency and specificity.
• Lilly will pay upfront cash of $100M, as well as invest $35M in DTIL's equity. Precision is also eligible to receive up to $420M in milestone payments, as well as tiered royalties ranging from the mid-single digits to low-teens on potential product sales
• Pre-clinical research and IND-enabling activities will be led by Precision, with Lilly then taking the responsibility for clinical development and commercialization. Lilly will have the right to select up to three additional gene targets. Precision can co-fund clinical development of one product in exchange for an increased royalty rate on co-funded product sales.
• Precision hosted a conference call and webcast at 8:30 a.m. ET today.
• https://seekingalpha.com/news/3638267-precision-biosciences-up-20-after-gene-therapy-pact-eli-lilly