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GEN News Highlights : Jan 5, 2007

Lilly In-Licenses OSI’s Diabetes Program for $25M

Company gains exclusive rights to the Glucokinase Activator program, and OSI could get up to $360 million in future payments.

OSI Pharmaceuticals’ diabetes and obesity subsidiary, Prosidion, granted Eli Lilly and Company exclusive rights to its Glucokinase Activator (GKA) program. The program includes PSN010 currently in a Phase I trial. "This in-licensing agreement will help bolster Lilly's early-stage pipeline and will augment one of our core therapeutic areas," comments David Moller, M.D., Lilly, vp, endocrine and cardiovascular research and clinical investigation.

Under the terms of the agreement, OSI will receive an upfront fee of $25 million, up to $360 million in potential development, sales milestones, and other payments, plus royalties on sales of any compounds successfully commercialized from the program.

GKAs are designed to attenuate hyperglycemia by rapidly lowering blood glucose levels through a dual mechanism of increasing glucose uptake in the liver and potentiating insulin secretion from the pancreas.