Eli Lilly licenses Alzheimer’s drug from AlzeCure in $1B deal

Eli Lilly ↘1.21% agreed to license global rights to AlzeCure Pharma’s Alzheimer’s candidate ACD680 for $10 million upfront and milestones potentially exceeding $1 billion.fiercebiotech
The small-molecule compound modulates gamma-secretase to reduce toxic amyloid-beta production while preserving Notch signaling, avoiding failures of earlier inhibitors.allsci
AlzeCure shares surged more than 259% in Stockholm on Tuesday; the deal still requires Swedish foreign direct investment approval before closing.ilsole24ore

Eli Lilly and AlzeCure Pharma Strike Billion-Dollar Alzheimer’s Licensing Deal

Swedish biotech AlzeCure Pharma announced on Tuesday that it has entered a collaboration and out-licensing agreement with Eli Lilly, granting the pharmaceutical giant global rights to its preclinical Alzheimer’s drug candidate Alzstatin ACD680. The deal includes a $10 million upfront payment, with development and commercial milestones that could push the total value beyond $1 billion, excluding royalties.fiercebiotech

A New Amyloid Strategy for Lilly

Alzstatin ACD680 is a small-molecule gamma-secretase modulator designed to reduce production of the toxic amyloid-beta protein Aβ42, which forms the basis of amyloid plaques in the brains of Alzheimer’s patients. Unlike earlier gamma-secretase inhibitors that failed in late-stage trials due to severe side effects, modulators like ACD680 work by shifting the enzyme’s cleavage preference rather than blocking it outright, preserving critical Notch signaling pathways. The compound is also intended to boost production of shorter, less harmful amyloid variants Aβ37 and Aβ38, which may help limit plaque buildup.coincentral

The deal adds a mechanistically distinct amyloid-targeting approach to Lilly’s neuroscience portfolio, which already includes the approved anti-amyloid antibody donanemab, marketed as Kisunla. Under the agreement, Lilly assumes full responsibility for clinical development and commercialization, while AlzeCure is eligible for tiered mid-single-digit royalties on future net sales.allsci

AlzeCure Shares Surge in Stockholm

The announcement sent AlzeCure Pharma shares soaring on the Stockholm Stock Exchange, climbing more than 259% during Tuesday’s session after peaking above 280% earlier in the day. The transaction remains subject to approval by Swedish authorities under foreign direct investment regulations before it can close.pharmatimes

AlzeCure CEO Martin Jönsson suggested the drug candidate could eventually serve a preventive role, indicating that such treatments could one day help delay the onset of Alzheimer’s disease. The compound remains in preclinical development, meaning years of clinical testing lie ahead before any potential commercial launch.ilsole24ore