LLY Eli Lilly and Co

By Colin Kellaher

Eli Lilly & Co. (LLY) on Monday said it will collaborate with privately held biotechnology company Avidity Biosciences Inc. to discovery and commercialize new medicines in immunology and other indications.

The Indianapolis drug maker said the companies will use Avidity's technology platform to progress new therapeutic approaches toward clinical development and commercialization.

Eli Lilly said it will invest $15 million in Avidity and make an upfront payment of $20 million to the La Jolla, Calif., biotech startup, which previously raised $30 million in venture financing from a group of investors.

The company said Avidity is also eligible for up to $405 million in milestone payments per target, along with tiered royalties on product sales.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 22, 2019 08:14 ET (12:14 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.