Sibia, Lilly to Develop Compounds for Treatment of CNS Disorders

Sibia Neurosciences Inc. (La Jolla, CA) has entered into a three-year collaborative agreement with Eli Lilly and Co. (Indianapolis) to research and develop compounds effective in treating disorders of the central nervous system (CNS). Sibia and Lilly will work together to identify and optimize compounds selective for subtypes of nicotinic acetylcholine receptors (nAChRs).

"A growing body of evidence suggests that regulation of specific nAChR subtypes may allow therapeutic intervention in a number of disorders including pain, schizophrenia, depression, Alzheimer's disease and Parkinson's disease," said Jeffrey F. McKelvy, executive VP and chief scientific officer of Sibia. "We believe that the nAChRs are a rich area for drug discovery."

Under the terms of the agreement, Sibia will receive a minimum of $20 million, which includes a payment in 1999 of $8 million for research funding and an investment in equity by Lilly. In addition, Sibia could also receive milestone payments and royalty payments. In exchange, Lilly will receive exclusive global rights to products that result from the collaboration. Lilly will conduct and fund all clinical trials for compounds discovered during the project and will receive an exclusive option to Sibia's two clinical candidates, SIB-1508Y for Parkinson's disease and SIB-1553A for Alzheimer's disease, both currently in phase II trials.

Sibia Neurosciences Inc. is engaged in the discovery and development of novel small molecule therapeutics for the treatment of neurodegenerative, neuropsychiatric ,and neurological disorders.

Eli Lilly and Co. is a research-based pharmaceutical corporation that is dedicated to creating and delivering pharmaceutical-based health care solutions.

For more information: William T. Comer, President and CEO, Sibia Neurosciences Inc., 505 Coast Blvd. South, Ste. 300, La Jolla, CA 92037-4641. Tel: 619-452-5892. Fax: 619-452-9279.