A joint deal with pharmaceutical giant Eli Lilly (NYSE:LLY) has Rigel Pharmaceuticals (NASDAQ:RIGL) stock climbing in trading today. RIGL stock was up more than 35% from the Wednesday close in pre-market trading today before giving up some of those gains.
The deal gives Eli Lilly an exclusive worldwide license to Rigel’s autoimmune and inflammatory disease treatments in a deal worth up to $960 million. RIGL will receive $125 million in cash up front and is eligible for another $835 million in milestone payments.
Rigel Pharmaceutical’s lead candidate drug, R552, is an “RIPK1 inhibitor,” indicating the signal protein it targets. RIPK1 inhibitors are a new approach to targeting autoimmune, inflammatory and neurodegenerative disorders.
Under the terms of the deal, Eli Lilly will bankroll the global commercialization of R552, while Rigel will maintain rights to co-sell the treatment in the U.S. Lilly will also assume responsibility for clinical development and commercialization of treatments for central nervous system.
The companies plan to advance R552 into phase 2 testing this year. Rigel is also exploring the use of fostamatinib for Covid-19 treatment, with phase 2 study results on that drug anticipated in April.
At time of writing, RIGL stock was up 9.6%, while LLY stock was down 1.7% on the day.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.