Versicor Licenses Fungicidal Agent from Eli Lilly and Co.

Versicor Inc. (Fremont, CA) and Eli Lilly and Co. (Indianapolis) have entered into licensing agreement under which Versicor will receive exclusive worldwide rights to LY303366, Lilly's semi-synthetic derivative of the natural product echinocandin B (ECB). LY303366 is a broad-spectrum, fungicidal agent that may offer a new method of treating fungal infections, including those caused by azole and/or polyene resistance organisms.

Under the terms of the agreement, Lilly will receive a signing fee, milestone payments based on the progression of LY303366 through the development process, and royalties on future sales. Lilly also retains an option for the development of an oral formulation of LY303366. In exchange, Versicor will receive exclusive worldwide commercialization rights and will be responsible for future development and clinical registration work.

LY303366, a potent inhibitor of fungal cell-wall biosynthesis, is currently in Phase II clinical studies as a treatment for severe fungal infections.

Versicor Inc. is a biopharmaceutical company dedicated to the discovery and development of novel antimicrobials.

Lilly is a research-based pharmaceutical corporation.

For more information: Sidney Taurel, President and CEO, Eli Lilly and Co., Lilly Corporate Center, Indianapolis, IN 46285. Tel: 317-276-2000. Fax: 317-277-6579.