Eli Lilly and Co. said Tuesday it will team up with Zosano Pharma Corp. on an experimental osteoporosis patch in a deal that could be worth more than $440 million.
Lilly said it will invest $15 million in Zosano, which filed for an initial public offering earlier this year. Zosano, of Fremont, California, could get $300 million if its drug advances through regulatory review and another $125 million if it reaches sales targets. The company will also get royalties on sales.
Osteoporosis is a bone disease that can lead to an increase in bone fractures. It mainly affects adults age 50 and older.
Zosano will fund the drug and run clinical trials. Lilly will handle sales.
Zosano said it has completed a mid-stage clinical trial of its ZP-PTH patch, and it is planning a late-stage study.
Shares of Indianapolis-based Lilly rose 2.7 percent Tuesday, to close at $70.38 each. Earlier in the day, the stock reached a 10-year high of $70.77.