Halozyme Therapeutics Inc. will get $25 million and as much as $800 million in milestone payments from a licensing agreement with Indianapolis-based drugmaker Eli Lilly and Co., the San Diego, California, biotechnology company said Monday.
The companies will work on coupling therapies from Lilly with Halozyme’s technology that helps the body disperse and spread medicine. Halozyme said in a statement that its technology could help Lilly more quickly deliver treatments that are injected under the skin.
The agreement will give Halozyme $25 million up front and as much as $160 million for each of as many as five drugs the companies work on together. Halozyme would also get “mid-single digit royalties” if therapies from the project are approved.
The agreement adds to collaborations Halozyme said it has with other drugmakers including AbbVie Inc., Pfizer Inc., Johnson & Johnson, Roche Holding AG and Baxalta Inc.
Lilly shares rose $1.10 to $85.87 in mid-morning tradinga 1 percent gain. Halozyme shares surged 6 percent to $17.03.