OSI Licenses Diabetes Program to Lilly

OSI Pharmaceuticals’ subsidiary, Prosidion Ltd., and Eli Lilly and Co. have entered into a licensing agreement granting Lilly exclusive rights to OSI’s Glucokinase Activator (GKA) program, which includes the lead compound PSN010. Under the terms of the agreement, OSI will receive an upfront fee of $25 million and as much as $360 million in potential development and sales milestones. OSI will also receive royalties on sales of any compounds resulting from the program.

GKAs like PSN010 are designed to lower blood glucose levels through a dual mechanism of increasing glucose uptake in the liver and promoting insulin secretion from the pancreas. PSN010 is currently in Phase I trials.

“This in-licensing agreement will help bolster Lilly’s early stage pipeline and will augment one of our core therapeutic areas,” said David Moller, M.D., Lilly, vice president of endocrine and cardiovascular research and clinical investigation. “We are committed to maintaining our leadership role in diabetes care, including addressing the increasing prevalence of type 2 diabetes. We will continue to seek out innovative molecules to add to our diabetes portfolio in order to best respond to the growing health crisis posed by diabetes worldwide.”

Colin Goddard, Ph.D., chief executive officer, OSI Pharmaceuticals commented, “We believe this licensing arrangement with a global leader in the field of diabetes like Lilly is an important validation of our diabetes and obesity research portfolio. Under Anker Lundemose’s leadership, our UK-based subsidiary, Prosidion, has established a portfolio of innovative drug candidates and demonstrated an ability to rapidly and effectively advance drug candidates to a clinical proof-of-concept.”