Eli Lilly, Kumquat to Discover Drug Candidates for Tumors

Eli Lilly and Company and Kumquat Biosciences recently entered into a multi-year collaboration to discover, develop, and commercialize potential small molecule drug candidates that stimulate tumor-specific immune responses. 

Kumquat Biosciences will utilize its small molecule immuno-oncology (IO) platform to discover novel clinical candidates while Eli Lilly and Company will have the option to select certain number of candidates for further development and commercialization globally. 

Kumquat will have development and commercialization rights in Greater China for each drug candidates Eli Lilly and Company selects. 

"Using small molecule inhibitors to target specific tumor antigens in complex with the immune machinery presents a unique opportunity to stimulate an enhanced tumor-specific immune response," Jacob Van Naarden, chief executive officer of Loxo Oncology at Eli Lilly and Company, said in the announcement.

"We look forward to working with the accomplished Kumquat team to identify candidate medicines that interact with this target class,” Naarden continued. 

Loxo Oncology at Eli Lilly and Company brings together the focus of biotech with the scale and resource of large pharma. The division’s goal is to rapidly deliver new medicines for individuals with cancer. 

So far, Loxo Oncology has developed nearly eight inhibitors for cancer, including LOXO-260, LOXO-338, LY3537982, BTK Inhibitor Pirtobrutinib, and RET Inhibitor Selpercatinib. 

FDA approved Selpercatinib in May 2020 for adult patients with metastatic RET fusion-positive non-small cell lung cancer and for adult and pediatric patients 12 years of age or older with advanced or metastatic RET-mutant medullary thyroid cancer.

The agency also approved the drug for adult and pediatric patients with fusion-positive thyroid cancer who require systemic therapy and whose cancer is radioactive iodine-refractory.

Under terms of the recent collaboration, Kumquat will receive nearly $70 million and is eligible to receive over $2 billion in potential milestone payments based on preclinical, development, and future commercial milestones. 

Eli Lilly and Company noted that it will reflect the transaction in its reported results and financial guidance according to Generally Accepted Accounting Principles (GAAP). 

"We are very excited to enter into this collaboration with Lilly," said Yi Liu, chief executive officer of Kumquat.

 "Kumquat is developing a novel small molecule IO platform and this collaboration with Lilly is expected to greatly expedite the development of this platform and maximize its full potential. We look forward to working with Lilly to identify the next generation IO drugs that will benefit a broad population of patients,” Liu continued.