ST. LOUIS — Pharmaceutical giant Eli Lilly & Co. has acquired a startup created by a pair of Washington University School of Medicine Scientists that is developing treatments for degenerative diseases such as Parkinson's, ALS and multiple sclerosis.
As part of the deal, Cambridge, Mass.-based Disarm Therapeutics received a $135 million upfront payment, though its equity holders could be eligible for up to $1.2 billion in future payments should Indianapolis-based Eli Lilly (NYSE: LLY) successfully develop new medicines following the acquisition.
Though based near Boston, Disarm was co-founded by Washington University professors Dr. Jeffrey Milbrandt and Dr. Aaron DiAntonio and was assisted in its earliest days by BioGenerator, the investment arm of St. Louis-based biotech booster BioSTL.
Milbrandt and DiAntonio identified that a single gene, called SARM1, was leading to the degeneration of axons, the nerve fibers that serve as transmission lines for the body's neurological system. Axon degeneration is a common issue in several neurological diseases, causing sensory, motor and cognitive symptoms. Milbrandt and DiAntonio were able to develop small molecules to block SARM1 and keep the axons from dying.
