Eli Lilly and Co ($LLY) announced that it has terminated its collaboration with Adocia. The firms had inked the deal in December, 2014 with the intent of developing BioChaperone Lispro, an ultra-rapid insulin, for the treatment of type 1 and type 2 diabetes.
Eli Lilly sent a letter to Adocia, notifying the withdrawal from the collaboration. It is reported that the product candidate had performed better than Eli Lilly’s Humalog in six clinical studies. Adocia announced that pursuant to Eli Lilly’s withdrawal, all the rights licensed under their collaboration agreement will revert back to Adocia at no cost. The company is expected to look for a new partner.
Eli Lilly stock has taken a beating as it lost close to 10% of its value in the past 12 months. The company had recently announced the plan of acquiring biotech firm CoLucid Pharmaceuticals Inc. The deal is expected to help Eli Lilly in fortifying its pain management portfolio.
CoLucid is developing lasmiditan, a 5-HT1F agonist, for the acute treatment of migraine headaches. The company has successfully completed the first pivotal phase III trial on lasmiditan. The data from the second pivotal phase III study (SPARTAN) is expected to be released during the second half of 2017. The purchase is expected to cost $960 million.