Earlier this week, Chugai Pharmaceutical and Eli Lilly entered into a license agreement for OWL833, Chugai’s oral non-peptidic GLP-1 receptor agonist. OWL833 is a Phase 1-ready asset that is being studied for the treatment of type 2 diabetes.
Eli Lilly has agreed to make an upfront payment of $50 million for OWL833, and Chugai will also remain eligible for milestones and royaly payments if the drug achieves approval down the line.
Yasushi Ito, M.D., Ph.D., Chugai’s executive vice president, co-head of Project & Lifecycle Management Unit commented, “We believe OWL833 can be a best-in-class oral non-peptide GLP-1 receptor agonist and that its value will be further enhanced through Lilly’s clinical development to contribute to people around the world who live with diabetes.”
Chugai also noted in a press release that there will be no change to Chugai’s consolidated financials forecast for the fiscal year ending December 2018 as a result of this transaction.
Eli Lilly reported that this transaction will be reflected in Lilly’s reported results and financial guidance according to Generally Accepted Accounting Principles (GAAP), and there will be no change to Lilly’s 2018 non-GAAP earnings per share guidance as a result of this transaction.
(Source: Chugai Pharmaceutical Co., Ltd.)