INDIANAPOLIS and CAMBRIDGE, Mass., Oct.
15, 2020 /PRNewswire/ -- Eli Lilly and Company (NYSE:
LLY) today announced a definitive agreement to acquire Disarm
Therapeutics, a privately-held biotechnology company creating a new
class of disease-modifying therapeutics for patients with axonal
degeneration. Disarm has discovered novel, potent SARM1 inhibitors
and is advancing them in preclinical development, with the goal of
delivering breakthrough treatments to patients with peripheral
neuropathy and other neurological diseases such as amyotrophic
lateral sclerosis (ALS) and multiple sclerosis.
Axonal degeneration is a common, yet unaddressed, pathology in a
broad range of neurological diseases and is known to cause severe
sensory, motor, and cognitive symptoms. Disarm's scientific
founders, Dr. Jeffrey Milbrandt and
Dr. Aaron DiAntonio of Washington University School of Medicine in
St Louis, discovered that the
SARM1 protein is a central driver of axonal degeneration. Disarm's
SARM1 inhibitors are designed to directly prevent the loss of
axons.
Under the terms of the agreement, Lilly will acquire Disarm for
an upfront payment of $135.0 million.
Disarm equityholders may be eligible for up to $1.225 billion in additional future payments for
potential development, regulatory and commercial milestones should
Lilly successfully develop and commercialize new medicines
resulting from the acquisition.
"Lilly continues to seek medicines to treat the debilitating
pain and loss of function associated with nerve damage," said
Mark Mintun, M.D., vice president of
pain and neurodegeneration research at Lilly. "The scientific team
at Disarm discovered an important and highly promising approach to
combat axonal degeneration. We will move quickly to develop their
SARM1 inhibitors into potential medicines for peripheral neuropathy
and neurological diseases, such as ALS and multiple sclerosis."
"Disarm's innovative approach to treating axonal degeneration
holds tremendous promise for addressing a wide spectrum of
neurological diseases, and we have made significant strides toward
enabling potentially transformative therapies," said Alvin Shih, M.D., Chief Executive Officer of
Disarm. "Lilly is ideally suited to advance this exciting new
approach to treating axonal degeneration, and we look forward to
seeing patients benefit from the work that Disarm initiated."
Disarm was founded by Atlas Venture, Drs. Milbrandt and DiAntonio
of Washington University School of
Medicine in St. Louis, and Atlas
Entrepreneurs-in-Residence Dr. Rajesh
Devraj and Dr. Raul Krauss.
Lightstone Ventures and AbbVie Ventures co-invested with Atlas to
support the foundational work at Disarm.
This transaction will be reflected in Lilly's reported results
and financial guidance according to Generally Accepted Accounting
Principles (GAAP). There will be no change to Lilly's 2020 non-GAAP
earnings per share guidance as a result of this transaction.
Aquilo Partners, L.P. acted as financial advisor and WilmerHale
LLP as legal advisor to Disarm on this transaction.
About Disarm Therapeutics
Disarm Therapeutics is a
biotechnology company that is creating a new class of
disease-modifying therapeutics for patients with axonal
degeneration, a central driver of neurological disability and
disease progression. By inhibiting the SARM1 protein, identified by
the company's scientific founders as the central driver of axonal
degeneration, these therapeutics may prevent the loss of axons in
chronic and acute diseases of the central, ocular, and peripheral
nervous systems. For a broad range of diseases including multiple
sclerosis, amyotrophic lateral sclerosis, glaucoma, and peripheral
neuropathies, the therapeutic goal is to prevent further
degeneration, stabilize disease, and allow for functional
recovery.
About Eli Lilly and Company
Lilly is a global
healthcare leader that unites caring with discovery to create
medicines that 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. C-LLY
Lilly Cautionary Statement Regarding Forward-Looking
Statements
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 Disarm Therapeutics
("Disarm"), and reflects Lilly's current beliefs. However,
as with any such undertaking, there are substantial risks and
uncertainties in implementing the
transaction and in the process of drug development and
commercialization. Among other things, there can be no
guarantee that the transaction will be completed in the anticipated
timeframe, or at all, or that the conditions required to complete
the transaction will be met, that Lilly will realize the
expected benefits of the acquisition, or that the acquisition will
yield commercially successful products. For a further discussion of
these and other risks and uncertainties that could cause actual
results to differ from Lilly's expectations, please see Lilly's
most recent Forms 10-K and 10-Q filed with the U.S. Securities and
Exchange Commission. Lilly undertakes no duty to update
forward-looking statements.
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)
Stephanie Simon;
stephanie@tenbridgecommunications.com; (617) 581-9333 (Disarm
Media)
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SOURCE Eli Lilly and Company