Lilly and AstraZeneca to develop second potentially disease-modifying treatment for Alzheimer's

"MEDI1814 has a unique mechanism among antibodies in clinical development and could provide a distinct approach to treating Alzheimer's disease."

The build-up of plaques in the brain containing the peptide amyloid-beta (Aβ) is one of the characteristics of AD. MEDI1814 binds selectively to Aβ42, a form of Aβ which is particularly associated with the disease. Binding dose-dependently reduces levels of this peptide, potentially slowing the progression of AD.

"At Lilly, we recognize the significant burden AD places on patients, caregivers and our society, and we remain committed to finding ways to change the course of the disease," said Jan Lundberg, executive vice president of science and technology and president of Lilly Research Laboratories. "We are pleased to be expanding our alliance with AstraZeneca to further build our pipeline of potential medicines and diagnostic agents. AstraZeneca brings capabilities and expertise and most importantly shares our passion to bring new medicines to patients suffering from this debilitating illness."

"We are excited to build on an already productive collaboration with Lilly, which combines the expertise of our two companies, with a new program focused on the amyloid-beta pathway," said Mene Pangalos, executive vice president, IMED Biotech Unit and Business Development, AstraZeneca. "MEDI1814 has a unique mechanism among antibodies in clinical development and could provide a distinct approach to treating Alzheimer's disease."

Under the terms of the new agreement, Lilly will make a $30 million upfront payment to AstraZeneca. Lilly will recognize the upfront of $30 million (pretax), or approximately $0.02 per share (after-tax), as a charge to earnings in the fourth quarter of 2016.