Eli Lilly will acquire worldwide rights from KeyBioscience to develop and commercialize its pipeline of dual amylin calcitonin receptor agonists (DACRAs) for type 2 diabetes and other metabolic disorders.

The companies have agreed to collaborate on developing new treatments based on KeyBioscience’s DACRA platform. That pipeline includes KBP-042, now in Phase II development as well as KBP-089, KBP-056, and other candidates in phases ranging from preclinical to Phase I. The dual activation of calcitonin and amylin receptors can successfully improve insulin sensitivity, suppress food intake, reduce fat deposition, improve blood glucose levels, and cause weight reduction.

Lilly agreed to pay KeyBioscience an initial $55 million, plus additional undisclosed payments tied to achieving development, regulatory, and commercialization milestones, as well as tiered royalties on future sales.

KeyBioscience is a fully owned subsidiary of Nordic Bioscience, a global drug development organization specializing in clinical research and innovative biomarker research focused on connective tissue diseases.