AC Immune Secures CHF10M Upfront, Potential CHF1.7B Milestones in Lilly Tau Collaboration
AC Immune amended its 2018 Morphomer Tau agreement with Lilly to cover development of new small-molecule tau aggregation inhibitors, with IND-enabling studies slated for H1 2026. The deal awards AC Immune a CHF10 million upfront payment, plus over CHF1.7 billion in potential milestone fees and low double-digit royalties.
1. Amendment to Morphomer Tau Collaboration
The amendment expands the 2018 license and collaboration to include development of new lead tau aggregation inhibitor candidates, ensuring ongoing research on Morphomer small molecules for Alzheimer’s and other neurodegenerative diseases. It extends the scope to potential backup compounds and continues joint discovery efforts with Lilly.
2. Financial Terms and Milestones
Under the revised terms, AC Immune receives a CHF10 million upfront payment and a subsequent milestone fee upon Phase 1 dosing. The company remains eligible for more than CHF1.7 billion in future development, regulatory and commercial milestones, plus tiered royalties in the low double digits.
3. Development Timeline and Preclinical Data
Investigational New Drug-enabling studies are scheduled to begin in H1 2026, leveraging Morphomer candidates selected for oral brain penetration and high-affinity binding to pathological tau conformations. Strong preclinical data support their potential to inhibit tau aggregation across disease stages.