Halozyme Enters Into Global Collaboration And Licensing Deal With Lilly

(RTTNews) - Halozyme Therapeutics, Inc. (HALO) said it has entered into a global collaboration and license agreement with Eli Lilly and Co. (LLY) to develop and commercialize products combining proprietary Lilly compounds with Halozyme's Enhanze platform.

Under the terms of the deal, Halozyme will receive an initial payment of $25 million, followed by milestone payments of up to $160 million for each of up to five collaboration targets valued at up to $800 million.

The payments are subject to Lilly's achievement of specified development, regulatory and sales-based milestones. In addition, Lilly will pay Halozyme mid-single digit royalties if products under the collaboration are commercialized.

The Halozyme Enhanze platform is based on a proprietary recombinant human hyaluronidase enzyme or rHuPH20 that temporarily degrades hyaluronan - a chain of natural sugars in the body - to aid in the dispersion and absorption of other injected therapeutic drugs. For Lilly, this technology may allow for more rapid delivery of injectable medications through subcutaneous delivery.