Gene Logic has entered into a drug repositioning and development agreement with Eli Lilly and Co. to seek alternative development paths for multiple Lilly drug candidates that were discontinued or de-prioritized in clinical trials for reasons other than safety.

The agreement provides for milestones and royalties similar to those paid for development-stage in-licensing deals, discounted to account for Lilly's contribution as the originator of the compound. Gene Logic will the option to receive an exclusive license to any drug candidate that Lilly chooses not to pursue, in which case Lilly would receive success-based milestone and royalty payments.

Gene Logic's Drug Repositioning Program offers partners an approach to strengthen their pipelines with high-quality drug candidates that originated from their own R&D efforts. The company's program evaluates drug candidates for potential utility across a wide spectrum of disease indications.

Mark Gessler, Gene Logic's chief executive officer, commented, "We are very pleased to have Lilly as our fourth major pharmaceutical partner. The goal of our program is to provide partners with substantial value; clearly this message is resonating with large pharmaceutical companies and is establishing Gene Logic as a leader in drug repositioning."