INDIANAPOLIS, May 14, 2018 /PRNewswire/ -- Eli Lilly and
Company (NYSE: LLY) today announced an agreement to acquire AurKa
Pharma, Inc., a company established by TVM Capital Life Science to
develop oncology compound AK-01, an Aurora kinase A inhibitor that
was originally discovered at Lilly. The compound is a potential
first-in-class asset that AurKa Pharma is studying in Phase 1
clinical trials in multiple types of solid tumors.
Aurora kinases are believed to play a crucial role in cellular
division by controlling chromosomal segregation. Defects in
segregation can cause genetic instability, a condition highly
associated with the formation of tumors. Aurora kinases, consisting
of Aurora A, Aurora B and Aurora C, are key mitotic regulators
required for genome stability and are frequently overexpressed in
cancerous tumors. AurKa Pharma's asset, AK-01, has been shown to be
highly selective for Aurora A, with potential clinical benefit
observed in Phase 1 studies. Future studies will seek to determine
if the selectivity profile of AK-01 can improve efficacy while
limiting toxicity risks to a manageable level.
After a review of its clinical pipeline priorities in 2016,
Lilly sold the compound to TVM Capital Life Science, which then
established AurKa as part of the TVM Life Science Ventures VII
fund. The fund is a novel investment model that seeks to develop
early-stage pharmaceutical assets in a capital-efficient manner. As
part of its innovation strategy, Lilly actively participates with
venture capital firms to source early stage opportunities.
"The acquisition of AurKa Pharma supports Lilly's external
innovation strategy, in which we seek to partner with leading life
science venture capital firms in order to identify, support and
access promising innovation in areas of unmet medical need," said
Darren Carroll, senior vice
president of corporate business development at Lilly. "We are
excited with the value TVM created for this compound through its
early-Phase studies, and we look forward to more opportunities in
the future."
"Lilly Oncology is focused on the development of innovative
cancer therapies that can make a meaningful difference for
patients," said Levi Garraway, M.D.,
Ph.D., senior vice president, global development and medical
affairs, Lilly Oncology. "The acquisition of AurKa Pharma expands
our pipeline with a promising oncology compound targeting a
distinct cell cycle pathway. The work done by AurKa will allow
Lilly to leverage emerging data about cancers in which this
molecule might be effective, and determine if it can be beneficial
to people living with various forms of cancer."
"Through the unique healthcare venture capital model pioneered
by TVM Capital Life Science, companies such as AurKa have been
established to more quickly and efficiently bring promising
compounds to clinical proof-of-concept," said Luc Marengere, Ph.D., Managing Partner at TVM
Capital Life Science. "We are pleased that the scientific advances
made by AurKa could contribute to the development of AK-01 and
hopefully help deliver a potential new medicine for cancer
patients."
Under the terms of the agreement, Lilly will acquire all shares
of AurKa Pharma. In return, AurKa Pharma shareholders will receive
an upfront payment of $110 million.
AurKa Pharma shareholders are also eligible to receive up to
$465 million in regulatory and sales
milestones should AK-01 gain approval in the U.S. and other
markets, and achieve certain sales levels.
This transaction will be reflected in Lilly's reported results
and financial guidance according to Generally Accepted Accounting
Principles (GAAP), and is subject to customary closing conditions.
There will be no change to Lilly's 2018 non-GAAP earnings per share
guidance as a result of this transaction.
Baird is acting as financial advisor to AurKa in this
transaction.
About Eli Lilly and Company
Lilly is a global
healthcare leader that unites caring with discovery to make life
better for people around the world. We were founded more than a
century ago by a man committed to creating high-quality medicines
that meet real needs, and today we remain true to that mission in
all our work. Across the globe, Lilly employees work to discover
and bring life-changing medicines to those who need them, improve
the understanding and management of disease, and give back to
communities through philanthropy and volunteerism. To learn more
about Lilly, please visit us at www.lilly.com and
www.lilly.com/newsroom/social-channels. C-LLY
About TVM Capital Life Science
TVM Capital Life
Science is a group of independent investment advisories and fund
managers for Venture Capital funds, investing into innovative
biotech, pharmaceutical, and medtech companies with teams based in
Munich and Montreal. Since 1984, TVM Capital Life Science
has invested in more than 140 life science companies in
Europe, Canada and the
United States, currently managing in excess of US$1.1 billion from more than 50 investors.
This press release contains forward-looking statements (as
that term is defined in the Private Securities Litigation Reform
Act of 1995) about the benefits of Lilly's
acquisition of AurKa Pharma, Inc. It reflects
Lilly's current beliefs; however, as with any
such undertaking, there are substantial risks and uncertainties
in implementing the transaction and in drug
development. Among other things, there can be no
guarantee that Lilly will realize the expected benefits of
the transaction, that the molecules will be
approved on the anticipated timeline or at all, or that the
potential products will be commercially successful. For
further discussion of these and other risks and uncertainties, see
Lilly's most recent Form 10-K and Form 10-Q filings
with the United States Securities and Exchange Commission. Except
as required by law, Lilly undertakes no duty to update
forward-looking statements to reflect events after the date of this
release.
Refer
to:
|
Mark Taylor;
mark.taylor@lilly.com; (317) 276-5795 (Lilly Media)
|
|
Kevin Hern;
hern_kevin_r@lilly.com; (317) 277-1838 (Lilly Investors)
|
|
Luc Marengere;
Marengere@tvm-capital.com; (514) 931-4111 x-5005 (TVM
Capital Life Science)
|
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SOURCE Eli Lilly and Company