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Eli Lilly to collaborate with KeyBioscience for treating metabolic disorders

Eli Lilly & Co. entered an agreement with KeyBioscience AG to develop dual amylin calcitonin receptor agonists, or DACRAs — a potential new class of treatments for metabolic disorders such as type 2 diabetes.

The collaboration includes access to the DACRA platform with multiple molecules including KBP-042, KBP-089 and KBP-056.

KeyBioscience will receive $55 million in up-front payment as well as milestone-related payments and royalties on the future sales of successful candidates.

KeyBioscience has initiated phase 2 development with KBP-042. Other assets range from phase 1 to preclinical.

The transaction is subject to antitrust approval.