AC Immune SA announced that it has amended its 2018 Morphomer Tau license and collaboration agreement with Eli Lilly, adding a CHF 10 million upfront payment and a milestone payment tied to Phase 1 dosing. The amendment also expands the scope of the partnership to include new lead Tau Morphomer candidates and potential backup compounds, positioning AC Immune to advance its Tau‑targeting platform toward clinical development.
The CHF 10 million cash infusion is a significant non‑dilutive funding source for AC Immune, which reported a CHF 70.5 million net loss for 2025 and a sharp decline in contract revenues to CHF 3.6 million from CHF 27.3 million in 2024. The deal unlocks more than CHF 1.7 billion in future development, regulatory, and commercial milestones, and tiered royalty payments in the low double‑digits, extending the company’s cash runway into the third quarter of 2027 even without additional milestone payments.
Strategically, the amendment reinforces AC Immune’s Morphomer platform, which delivers orally bioavailable small molecules that target intracellular Tau. Eli Lilly’s continued investment signals confidence in the technology and accelerates the path to IND‑enabling studies, expected to begin in the first half of 2026. The partnership aligns with the broader industry shift toward Tau and other proteinopathies as therapeutic targets for Alzheimer’s disease.
Dr. Andrea Pfeifer, CEO of AC Immune, said, “The progress in this collaboration highlights the important breakthroughs we have made with Morphomer small molecules for intracellular targeting of Tau. We look forward to working with the team at Lilly to drive forward the development of these potentially disruptive small molecule therapeutics for early‑stage treatment and long-term prevention of neurodegenerative diseases.”
Investors welcomed the deal, citing the immediate CHF 10 million cash infusion and the validation of AC Immune’s technology by a major pharmaceutical partner. The announcement also underscores the company’s ability to secure non‑dilutive funding in a highly competitive Alzheimer’s drug‑development landscape, where many Tau‑targeting programs have faced setbacks.
The deal comes at a time when AC Immune has been managing a significant cash burn, having reduced its workforce by roughly 30 % in 2025 and cutting cash reserves from CHF 165.5 million to CHF 91.4 million. The new milestones and royalties provide a financial cushion that supports continued investment in research and development while the company navigates the challenges of bringing a novel Tau‑targeting therapy to market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.