UK markets close in 3 hours 31 minutes
  • FTSE 100

    6,625.88
    -49.59 (-0.74%)
     
  • FTSE 250

    21,323.55
    -112.77 (-0.53%)
     
  • AIM

    1,174.57
    -14.32 (-1.20%)
     
  • GBP/EUR

    1.1592
    +0.0030 (+0.26%)
     
  • GBP/USD

    1.3951
    -0.0002 (-0.02%)
     
  • BTC-GBP

    35,396.91
    -1,699.90 (-4.58%)
     
  • CMC Crypto 200

    989.80
    +2.59 (+0.26%)
     
  • S&P 500

    3,819.72
    -50.57 (-1.31%)
     
  • DOW

    31,270.09
    -121.43 (-0.39%)
     
  • CRUDE OIL

    61.50
    +0.22 (+0.36%)
     
  • GOLD FUTURES

    1,716.60
    +0.80 (+0.05%)
     
  • NIKKEI 225

    28,930.11
    -628.99 (-2.13%)
     
  • HANG SENG

    29,236.79
    -643.63 (-2.15%)
     
  • DAX

    14,028.14
    -51.89 (-0.37%)
     
  • CAC 40

    5,821.38
    -8.68 (-0.15%)
     

Lilly (LLY) Inks Deal With Merus to Discover Cancer Antibodies

Zacks Equity Research
·2-min read

Eli Lilly & Company’s LLY subsidiary, Loxo Oncology announced a deal with Netherlands’ Merus N.V. MRUS to discover up to three novel T-cell re-directing bispecific antibodies for cancer. The potential medicines will be developed by leveraging Merus’ proprietary CD3 T-cell engager Biclonics platform.

Lilly will make an upfront payment of $40 million to Merus while also investing in the latter’s stock worth $20 million. In addition, Merus will also be eligible to receive up to $540 million in potential milestone payments for one product, which will add up to approximately $1.6 billion for three products. Merus will also be entitled to royalties on sales of any product, if successfully developed under the deal.

While Merus will lead discovery and early-stage development, Loxo Oncology will take care of further development and commercialization activities. Merus’ shares were up 6% on the announcement of the deal.

In the past year, Lilly’s shares have risen 40.9% compared with the industry’s increase of 4.6%.

 

 

Lilly regularly adds promising new pipeline assets through M&A deals. Among the recent deals, in December, Lilly announced a definitive agreement to acquire Prevail Therapeutics PRVL for $22.50 per share in cash or an aggregate value of $880 million. The acquisition will add Prevail’s promising gene-therapy candidates, targeting neurodegenerative diseases, to Lilly’s portfolio. In November, Lilly entered into a research collaboration and an exclusive license agreement with North Carolina-based biotech Precision BioSciences DTIL for using the latter’s proprietary genome editing platform to develop potential in vivo therapies for treating genetic disorders, especially Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets.

Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Merus N.V. (MRUS) : Free Stock Analysis Report
 
Prevail Therapeutics Inc. (PRVL) : Free Stock Analysis Report
 
Precision BioSciences, Inc. (DTIL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research