Benzinga | Jan 7, 2021 07:15AM EST

Precision BioSciences Announces Closing Of In Vivo Gene Editing Collaboration And License Agreement With Eli Lilly Following Clearance Under Hart-Scott-Rodino Antitrust Improvements Act of 1976; Co. To receive $100M Upfront cash Payment

DURHAM, N.C., Jan. 07, 2021 (GLOBE NEWSWIRE) -- Precision BioSciences, Inc. (NASDAQ:DTIL), a clinical stage biotechnology company dedicated to improving life with its novel and proprietary ARCUS(r) genome editing platform, today announced the closing of its in vivo gene editing research collaboration and exclusive license agreement with Eli Lilly and Company following clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.



As previously announced on November 20, 2020, Precision and Lilly entered into a research collaboration agreement to use Precision's proprietary ARCUS genome editing platform for pre-clinical and IND-enabling activities for up to six gene targets, with an initial focus on Duchenne muscular dystrophy (DMD) and two other undisclosed gene targets.

Under the terms of the agreement, Precision will receive an upfront cash payment of $100 million, and has received $35 million from Lilly's purchase of newly issued shares of Precision's common stock. Precision is also eligible to receive up to $420 million in potential development and commercialization milestones per product, as well as tiered royalties ranging from the mid-single digits to low-teens on product sales should Lilly successfully commercialize a therapy from the collaboration. Precision will lead pre-clinical research and IND-enabling activities, with Lilly then assuming responsibility for clinical development and commercialization. Lilly will have the right to select up to three additional gene targets for this collaboration. Precision can co-fund clinical development of one product in exchange for an increased royalty rate on co-funded product sales.