Olix Pharmaceuticals has entered into a $630 million licensing agreement with Eli Lilly and Company aimed at the development and commercialization of treatments targeting cardiovascular and metabolic diseases. The deal, announced on Friday, grants Eli Lilly an exclusive license for the project, with the total contract value encompassing both upfront and milestone payments.
The upfront payment will enable Olix to conduct a Phase 1 clinical trial of its drug candidate, OLX702A, in Australia. Eli Lilly will be responsible for advancing further research, development, and commercialization efforts of the treatment.
The drug is designed to target metabolic associated steatohepatitis (MASH), a condition characterized by the accumulation of neutral fat in liver cells, even in the absence of alcohol consumption. MASH can lead to serious liver diseases, including cirrhosis, liver cancer, and liver failure.
GlobalData, a market research firm, projects that the MASH treatment market will grow to $25.3 billion by 2026.
Following the announcement of the deal, Olix Pharmaceuticals saw a significant increase in its stock price, with shares rising by 29.93 percent to close at 26,700 won ($18.40) on the Kosdaq exchange on Monday.
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