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Olix, Eli Lilly to develop liver disease drug under $630 million deal

Published: 10 Feb. 2025, 16:25 Updated: 10 Feb. 2025, 16:38

LEE JAE-LIM
[email protected]

Logo of Olix Pharmaceuticals [OLIX PHARMAECUTICALS]

Olix Pharmaceuticals signed a $630 million licensing deal with Eli Lilly and Company to develop and commercialize treatments targeting cardiovascular and metabolic diseases.

Olix will grant Eli Lilly an exclusive license for the project, and the total contract value includes upfront and milestone payments, according to Olix’s electronic disclosure filed Friday.

Olix will use the upfront payment to complete a phase 1 clinical trial for its candidate OLX702A in Australia while Eli Lilly will work on further research, development and commercialization.

The drug primarily targets metabolic associated steatohepatitis (MASH), the accumulation of neutral fat in liver cells even without alcohol consumption, which may lead to severe liver diseases such as cirrhosis, liver cancer and liver failure.

Market researcher GlobalData projected that the MASH treatment market would reach $25.3 billion by 2026.

Shares of Olix Pharmaceuticals spiked 29.93 percent to close at 26,700 won ($18.40) on Monday on the Kosdaq bourse following the deal's announcement Friday evening.

BY LEE JAE-LIM [[email protected]]