Eli Lilly Secures Early-Stage ALS Drug Program in $415M Deal with Alchemab

Eli Lilly has taken a significant step in expanding its neurodegenerative disease pipeline by licensing an early-stage amyotrophic lateral sclerosis (ALS) drug program from British biotech Alchemab. The deal, worth up to $415 million, comes just four months after the two companies entered into a discovery collaboration.

Deal Structure and Drug Program Details

The agreement centers around ATLX-1282, Alchemab's first-in-class preclinical program for ALS and other neurodegenerative conditions. Under the terms of the deal, Alchemab will lead the program through early phase 1 testing, after which Eli Lilly will assume responsibility for further development and commercialization activities.

The financial structure of the agreement includes a combination of upfront payments, discovery milestones, and royalties, totaling up to $415 million. This deal marks the first drug asset licensed from the January 2025 collaboration between Eli Lilly and Alchemab, which initially focused on developing up to five new antibodies for ALS research.

Alchemab's Technological Approach

Alchemab, known for its AI and machine learning capabilities in drug discovery, leverages Nvidia's supercomputer in Cambridge to identify novel targets and antibodies. This technological edge has likely played a crucial role in the rapid progression from initial collaboration to licensing agreement with Eli Lilly.

ALS Treatment Landscape

The licensing of ATLX-1282 comes at a critical time in ALS drug development. ALS, also known as Lou Gehrig's disease, is a progressive neurodegenerative disorder affecting nerve cells in the brain and spinal cord, ultimately proving fatal. While the past decade has seen increased research activity and new drug approvals, the field has also faced significant challenges.

Recent developments in ALS treatments include:

1. Biogen and Ionis' Qalsody: Approved by the FDA in 2023 for ALS patients with mutations in the SOD1 gene.
2. Amylyx Pharmaceuticals' Relyvrio: Initially approved but later withdrawn from the market in 2024 due to failure in a confirmatory trial.
3. Setbacks in clinical trials: AbbVie-Calico and Denali both reported failures in phase 2/3 trials for their respective ALS treatments earlier this year.

The mixed results in recent ALS drug development underscore the complexity of the disease and the urgent need for innovative approaches, highlighting the potential significance of Eli Lilly's investment in Alchemab's ATLX-1282 program.