Lilly, Precision BioSciences Reach Genome Editing Research Collaboration And License Deal

(RTTNews) - Eli Lilly and Co. (LLY) and Precision BioSciences Inc. (DTIL) announced a genome editing research collaboration and license agreement.

Lilly's agreement will utilize Precision's proprietary ARCUS genome editing platform for the research and development of potential in vivo therapies for genetic disorders, with an initial focus on Duchenne muscular dystrophy and two other undisclosed gene targets, the companies said in a statement.

As per the terms of the deal, Precision will receive an upfront cash payment of $100 million, as well as an equity investment by Lilly of $35 million in Precision's common stock.

Precision is also eligible to receive potential milestones up to $420 million per product, as well as tiered royalties on sales of licensed products.

Precision will lead pre-clinical research and IND-enabling activities, with Lilly then assuming responsibility for clinical development and commercialization.

Lilly will have the right to select up to three additional gene targets for the collaboration. Precision can co-fund clinical development of one product in exchange for an increased royalty rate on co-funded product sales.