By Colin Kellaher

Eli Lilly & Co. on Thursday said it plans to work with Canadian biotechnology company Entos Pharmaceuticals to research, develop and commercialize nucleic-acid products in multiple neurologic indications.

The Indianapolis drugmaker said it would make an initial payment of $50 million to Entos, which includes an equity investment, and acquire exclusive rights to Entos's Fusogenix nucleic acid delivery technology.

Eli Lilly said the companies have agreed to multiple programs focused on the development of proteo-lipid vehicles, or PLVs, for delivery of therapeutic cargo supplied by Eli Lilly to targets in the central and peripheral nervous systems.

Entos, based in Edmonton, Alberta, will be responsible for the generation, development and optimization of the PLVs using its proprietary Fusogenix platform technology, while Eli Lilly will be responsible for selecting PLVs for clinical development and commercialization.

Eli Lilly said Entos is eligible to receive up to $400 million in milestone payments for each program under the collaboration, along with royalties on sales of any products resulting from the work.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

01-06-22 0713ET