Eli Lilly and Company (NYSE: LLY) has signed agreements with private investors Care Capital and NovaQuest Capital to establish BioCritica Inc., a newly-formed and privately-held biotechnology company. BioCritica, based in Central Indiana, will initially focus on the continued U.S. development and commercialization of Xigris® (drotrecogin alfa (activated)), Lilly's medicine for severe sepsis. BioCritica intends to ultimately build a broad portfolio of innovative, hospital-based critical care medicines.
As part of a licensing agreement, BioCritica will acquire the U.S. development and commercialization rights to Xigris and will also receive the rights to potentially acquire several critical care compounds currently in pre-clinical development at Lilly. The collaboration also includes a supply agreement, a services agreement and an option for BioCritica to potentially acquire the development and commercialization rights to Xigris outside the U.S. at a later date. In return, Lilly will receive royalties on future U.S. sales of Xigris and will also receive an equity stake in BioCritica. Specific financial terms of the transaction are not being disclosed.
The creation of BioCritica received the support of the Indiana Economic Development Corporation (IEDC) and BioCrossroads, Indiana's public-private initiative to grow, advance and invest in the life sciences. BioCritica's formation and the Lilly-BioCritica collaboration are the latest successes in the state's efforts to attract new life sciences companies to Central Indiana.
"We are pleased to announce the formation of a new life sciences company in Central Indiana, BioCritica. The collaboration between Lilly and BioCritica will benefit both companies, as well as the patients we serve and the Indianapolis community in which we operate," said John C. Lechleiter, Ph.D., Lilly president, chairman and chief executive officer. "We are confident that BioCritica will help realize the full potential for Xigris, while working to develop new critical care medicines. We look forward to working with BioCritica to help ensure its success."
"For severe sepsis patients, Xigris is an important life-saving drug," said David Broecker, chief executive officer of BioCritica. "Each year more than 200,000 people die from severe sepsis in the U.S. We look forward to building a company dedicated to saving lives. We also appreciate the support of Lilly, the IEDC, and BioCrossroads in helping us get established here in Indiana."
"Indiana's consistently strong growth in the life sciences sector is evidence that not only do we have the talent to power some of the world's top biotechnology companies, but we also have an environment welcoming to the kind of noticeable impact companies like BioCritica and others will have on our state's economy and the quality of life of citizens everywhere," said Mitch Roob, Indiana Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.
About BioCritica
BioCritica is a biotechnology company focused on meeting the critical care needs of patients and clinicians in the hospital market. In addition to Xigris for the treatment of severe sepsis, BioCritica is developing a pipeline of other products. Our mission is to develop and commercialize products that make a dramatic improvement in people's lives.
About Eli Lilly and Company
Lilly, a leading innovation-driven corporation, is developing a growing portfolio of pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers — through medicines and information — for some of the world's most urgent medical needs.
About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC.
About Care Capital
Care Capital is a life sciences venture capital firm based in Princeton, New Jersey. It manages approximately $500 million in capital and invests in entrepreneurial biotechnology and specialty pharmaceutical companies that are developing pharmaceutical assets across all therapeutic areas.
About NovaQuest
NovaQuest manages private equity and other investments in the global biopharmaceutical sector, where its principal focus is investing in late-stage clinical assets and commercial phase biopharmaceutical products. Over the past decade, the team has worked together to invest approximately $882 million.