Eli Lilly (LLY.US) doubles down on new cancer-fighting track: $1.25 billion partnership with Magnet Bio to develop molecular glue drugs.

Biotechnology company Magnet Biomedicine announced on Friday that it has reached a licensing agreement worth up to $1.25 billion with Eli Lilly (LLY.US) to jointly develop cancer drugs using Magnet's TrueGlue discovery platform. Under the agreement, Magnet will receive up to $40 million in upfront and near-term payments as well as equity from Eli Lilly to support their collaborative research efforts. The two companies will be utilizing Magnet's TrueGlue platform to develop molecular glue therapies for cancer treatment. Additionally, Magnet is eligible to receive tiered royalties on global net sales and milestone payments exceeding $1.25 billion based on the achievement of development, regulatory, and commercial milestones. The TrueGlue platform by Magnet is designed to develop small molecules that can promote protein-protein interactions and generate clinically relevant therapeutic responses in patients. Magnet CEO Brian Safina stated, "Eli Lilly is committed to innovation and has deep expertise in bringing transformative medicine to patients, making them an ideal partner for Magnet. Together, we will uncover the untapped potential of molecular glue."