Foghorn Therapeutics Stock Surges After $1.5B Cancer Pact With Eli Lilly
8:57 am ET December 13, 2021 (Benzinga) Print
Loxo Oncology, an R&D group of Eli Lilly And Co (NYSE: LLY), and Foghorn Therapeutics Inc (NASDAQ: FHTX) have collaborated to create oncology medicines by applying Foghorn's Gene Traffic Control platform.
The collaboration includes a co-development and co-commercialization agreement for Foghorn's selective BRM oncology program and an additional undisclosed oncology target.
In addition, the collaboration includes three additional discovery programs using Foghorn's Gene Traffic Control platform.
Under the agreement terms, Foghorn will receive upfront consideration of $300 million in cash and an equity investment by Lilly of $80 million at $20 per share.
For the BRM-selective program and the additional undisclosed target program, Foghorn will lead discovery and early research activities.
Lilly will conduct development and commercialization activities with participation from Foghorn in operational activities and cost-sharing.
Foghorn and Lilly will share 50/50 in the U.S. economics, and Foghorn is eligible to receive royalties on ex-U.S. sales.
Foghorn will lead discovery and early research activities for the additional discovery programs, and it may receive up to a total of $1.3 billion in potential development and commercialization milestones.
Price Action: FHTX shares are up 37.6% at $16.50, LLY stock is up 0.35% at $245.00 during the premarket session on the last check Monday.
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