Eisai Co., Ltd (TYO: 4523), a Japanese pharmaceutical company, and SEED Therapeutics Inc., a U.S. biotech firm, have announced their intention to enter into a research collaboration aimed at developing novel molecular glue degraders for neurodegenerative diseases and oncology. Eisai will leverage SEED’s expertise in targeted protein degradation (TPD) to enhance its drug development pipeline, with an agreement that includes potential payments of up to USD 1.5 billion in upfront and milestone fees, plus royalties on future sales.
In conjunction with this strategic alliance, Eisai has taken the lead in the initial segment of SEED’s Series A-3 financing round, securing a closing of USD 24 million, with an anticipated second closing targeted for the fourth quarter of 2024.
The collaboration structure dictates that SEED will spearhead preclinical discovery for designated targets, encompassing the selection of E3 ligases and the identification of suitable molecular glue degraders. Upon successful development, Eisai will secure exclusive global rights to develop and commercialize any resulting compounds. This partnership follows a similar strategic alliance between SEED and Eli Lilly & Co., where Lilly also made an investment in the U.S. biotech, highlighting a trend of established pharmaceutical companies partnering with innovative biotechs in the TPD space.- Flcube.com
