Nicholas R&D firm signs deal with Eli Lilly

NPIL Research & Development (NRDL) has signed a second new drug development agreement with Eli Lilly and Company to develop, and in certain regions commercialise, a select group of Eli Lilly's pre-clinical drug candidates that span multiple therapeutic areas.

According to a release issued by Nicholas Piramal (NPIL) to the BSE today, the new NRDL-Lilly alliance generally follows the framework established by the earlier agreement between NPIL and Lilly signed on January 12, 2007, and continues the rationale of seeking to increase productivity in drug development by synergising the unique strengths of both companies and equitably sharing risk and reward.

"The second agreement includes an innovative structure that may improve the probability of success of the programme. In this new agreement, both NRDL and Lilly will independently carry out early clinical development of two different candidate compounds directed against the same target. Following the evaluation of the data from the proof-of-concept studies, one or more of the drug candidates may be selected for further development. NRDL's compensation, based on a pre-agreed formula, could total up to $110 million in call-back payments and milestones plus royalties on sales," the release added.

Dr. Swati Piramal, director (strategic alliances & communications), NPIL, said: "We are strengthening our R&D collaboration with Eli Lilly as our first agreement is on track and has seen benefits accruing to both partners in terms of cost, quality and time. These partnerships are a win-win for both companies, and will help us to reduce the burden of human disease."