(Lilly) Shares of Foghorn Therapeutics Inc. rose more than 47% on Monday on the news that Eli Lilly and Company has selected its Gene Traffic Control platform for novel oncology drugs.
Under the terms of the deal, Foghorn will earn a consideration of $300 million in cash and an equity investment of $80 million by Lilly on Foghorn’s shares at $20 apiece.
The agreement includes a co-commercialization and co-development for the target’s BRM oncology program and oncology target. Three discovery programs are also included in a deal Foghorn could receive up to $1.3 billion in commercialization and development activities.
The deal allows both companies to have an equal share in the US economics, with Foghorn eligible for royalties on non-US sales in the range of low double-digit into the twenties.
Foghorn CEO Adrian Gottschalk says the collaboration with Lilly expands and accelerates its pipeline while also improving its bottom line.
LLY: NYSE is up +1.53%, FHTX: NASDAQ is up +47.92%.
