LLY Eli Lilly and Co

By Colin Kellaher

Eli Lilly & Co. on Thursday said it would receive an exclusive worldwide license to Rigel Pharmaceuticals Inc.'s receptor-interacting serine/threonine-protein kinase 1, or RIPK1, inhibitors as part of a collaboration with the clinical-stage biotechnology company.

Eli Lilly said it would make an up-front payment of $125 million to Rigel, which would also be eligible for up to $835 million in future development, regulatory and commercial milestones, along with royalties on sales.

The Indianapolis drugmaker said the companies plan to co-develop and commercialize Rigel's Phase 2-ready R552 inhibitor for all indications, including autoimmune and inflammatory diseases.

Eli Lilly said it would also lead all clinical development of brain-penetrating RIPK1 inhibitors in central-nervous-system diseases.

Shares of South San Francisco, Calif.-based Rigel, which closed Wednesday at $4.53, jumped more than 40% in premarket trading Thursday.

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

(END) Dow Jones Newswires

February 18, 2021 07:09 ET (12:09 GMT)

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