A new drug design team-up has materialized for New York-based computational technology company Schrödinger. The company announced its $425 million deal to “align on a target of interest,” as put by Schrödinger’s President of Therapeutics R&D Karen Akinsanya, in a small molecule program with pharma giant Eli Lilly at its annual Platform Day with investors. Eli Lilly will bring to the collaboration its formidable prowess for pre- and regular clinical development as well as commercialization when Schrödinger wraps up discovery and optimization of small molecule compounds, which will be addressing an as-of-now undisclosed target.
Eli Lilly will not, however, be entirely absent from the early stages of development; the company is tasked with incorporating animal models for compound characterization. Although any sort of upfront fee was not mentioned, it will fork over the $425 million through discovery, development, and commercial milestone payments and subsequently be able to collect a series of single- to low double-digit royalties on assets reaching the commercialization phase.
“The combined portfolio of collaborations, proprietary programs, and partnerships has continued to evolve,” said Akinsanya during the Platform Day presentation. “And we’re excited by the number of programs that have transitioned from the discovery phase now into the clinic.”