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Lilly (LLY) Inks Deal for Multiple Neurologic Indications

Eli Lilly LLY announced that it has entered into a research and collaboration agreement with Entos Pharmaceuticals to develop innovative nucleic acid therapies targeting multiple neurologic indications.

Per the deal, Lilly has in-licensed rights to Entos Pharmaceuticals' Fusogenix nucleic acid delivery technology to develop proteo-lipid vehicles (PLV) for the delivery of Lilly’s therapeutic cargo to targets in the central and peripheral nervous systems.

While Entos will be responsible for the generation, development, and optimization of PLVs using its proprietary Fusogenix platform technology, Lilly will be in charge of selecting PLVs for clinical development and commercialization.

Shares of Lilly have rallied 56.4% in the trailing 12 months in comparison with the industry’s 17.8% decline.

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Per the agreement terms, Entos will receive an upfront payment of $50 million — including an equity investment — from Lilly. Further, Entos is eligible to receive potential developmental and commercial milestone payments up to $400 million for each program under the collaboration. Entos is also eligible to receive royalties upon successful commercialization of these therapies.

Lilly is aiming to expand to the neuroscience portfolio, which currently includes marketable drugs like Emgality (for preventive migraine treatment), Cymbalta (for major depressive disorder) and Zyprexa (for schizophrenia). During third-quarter 2021, Lilly generated $450.2 million in revenues from neuroscience products.

This collaboration with Entos will give an impetus to Lilly to expand the neuroscience pipeline.

Zacks Rank & Stocks to Consider

Eli Lilly currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include AbbVie ABBV, Pfizer PFE and Precision BioSciences DTIL. While both Pfizer and Precision BioSciences currently carry a Zacks Rank #1 (Strong Buy), AbbVie currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Pfizer’s earnings per share estimates for 2022 have increased from $3.84 to $5.50 in the past 60 days. Shares of Pfizer have rallied 48% in the past year.

Earnings of Pfizer beat earnings estimates in three of the last four quarters and missed expectations in one, with the average surprise being 10.9%.

Precision BioSciences’ loss per share estimates for 2022 have narrowed from $2.39 to $1.91 in the past 60 days.

Earnings of Precision BioSciences beat estimates in all the last four quarters, delivering a surprise of 76.9%, on average.

AbbVie’s earnings per share estimates for 2022 have increased from $13.99 to $14.09 in the past 60 days. Shares of AbbVie have risen 26.7% in the past year.

Earnings of AbbVie beat estimates in three of the last four quarters and met expectations in one, with the average surprise being 3%.

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