BioArctic lands $30M from Lilly in deal worth up to $800M

BioArctic AB will receive $30 million upfront from Eli Lilly & Co. to combine its BrainTransporter technology with an undisclosed Lilly drug candidate for neurodegenerative diseases, the companies said June 22.

"I'm excited by today's announcement and proud that a large pharmaceutical company sees potential in our proprietary BrainTransporter technology," Gunilla Osswald, chief executive officer at BioArctic, said.

BioArctic is eligible for additional milestone payments of as much as $770 million and tiered mid-single-digit royalties on future global sales. Lilly will assume full responsibility for development and commercialization of any resulting product. The agreement is the fourth collaboration using the BrainTransporter platform, following pacts with Eisai Co., Bristol Myers Squibb Co. and Novartis AG.

The deal strengthens the case for BioArctic's platform for shuttling large-molecule drugs across the blood-brain barrier, a major hurdle in treating central nervous system disorders. BioArctic retains rights to the technology outside the four existing agreements, leaving room for additional partnerships across multiple therapy areas.

BioArctic, the Swedish biotech that invented Leqembi (lecanemab) — the first drug proven to slow progression in early Alzheimer's disease — has built a pipeline that includes antibodies against Parkinson's disease and ALS. Several of those programs use the BrainTransporter technology, which uses the transferrin receptor to actively transport medicines across the blood-brain barrier, enabling broader brain distribution and potentially better efficacy with improved safety.

The Lilly collaboration covers an undisclosed drug candidate in neurodegeneration, a category that includes Alzheimer's, Parkinson's and amyotrophic lateral sclerosis. BioArctic will generate the new drug candidate combining its platform with Lilly's molecule before handing over global development responsibilities.

For Lilly, the deal reinforces its commitment to central nervous system drug development. The Indianapolis-based pharmaceutical giant has been expanding its neuroscience pipeline, which already includes donanemab, an Alzheimer's treatment that received US approval in 2024.

BioArctic's cash position was not disclosed in the announcement. The company's B shares trade on Nasdaq Stockholm's Large Cap segment under the ticker BIOA B. All milestone and royalty revenue depends on successful clinical development and regulatory approval, with no guarantee the investigational agent will reach the market.

This article is for informational purposes only and does not constitute investment advice.