Eli Lilly To Acquire Global Rights For Non-Opioid Pain Asset From Centrexion

(RTTNews) - Healthcare company Eli Lilly and Co. (LLY) announced Tuesday a license agreement to acquire the exclusive worldwide rights for CNTX-0290 from biopharmaceutical company Centrexion Therapeutics Corp. (CNTX).

Centrexion is a company focused on developing non-opioid, non-addictive therapeutics for the treatment of chronic pain.

CNTX-0290 is a novel, small molecule somatostatin receptor type 4 (SSTR4) agonist that is currently being studied in Phase 1 clinical testing as a potential non-opioid treatment for chronic pain conditions.

Under the terms of the agreement, Lilly will pay Centrexion an upfront payment of $47.5 million and Centrexion may be eligible for up to $575 million in potential development and regulatory milestones.

If CNTX-0290 is successfully commercialized, Centrexion would be eligible for up to $375 million in potential sales milestones and tiered royalties ranging from the high-single to low-double digits. Lilly and Centrexion may also elect at a later date to co-promote CNTX-0290 in the U.S.

This transaction, which is subject to customary closing conditions, will be reflected in Lilly's reported results and financial guidance according to Generally Accepted Accounting Principles (GAAP). There will be no change to Lilly's 2019 non-GAAP earnings per share guidance as a result of this transaction.