Eli Lilly & Co. and AstraZeneca PLC announced Friday an agreement to develop a potential treatment for Alzheimer’s disease that is currently in Phase 1 trials. As part of the agreement, Lilly will make a $30 million upfront payment to AstraZeneca. Lilly will record a 2 cents-a-share charge to earnings in the fourth quarter as a result of the payment. The agreement builds on a current collaboration related to a potential treatment currently in Phase 3 trials. “We are pleased to be expanding our alliance with AstraZeneca to further build our pipeline of potential medicines and diagnostic agents,” said Jan Lundberg, president of Lilly Research Laboratories. AstraZeneca’s stock climbed 1.4% in premarket trade, while Lilly shares were still inactive. AstraZeneca’s stock has tumbled 23% year to date through Thursday, while Lilly shares have dropped 20%, the SPDR Health Care Select Sector ETF has shed 5.6% and the S&P 500 has gained 9.9%.
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