BrainTransporter Partnership
BioArctic and Eli Lilly partner on neurodegeneration treatment using BrainTransporter in $770M deal
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Key Points
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BioArctic said this is its fourth BrainTransporter collaboration, following deals with Eisai, Bristol Myers Squibb and Novartis.
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BioArctic highlighted its track record and broader neurodegeneration focus, saying it co-invented Leqembi and maintains a pipeline targeting Alzheimer’s, Parkinson’s and ALS, with several BrainTransporter projects aimed at improving delivery of biologics to the brain.
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In its announcement, BioArctic CEO said: "I'm excited by today's announcement and proud that a large pharmaceutical company sees potential in our proprietary BrainTransporter technology. Lilly shares our ambition to do more for patients with severe neurological disorders, and this collaboration is a testament to that."
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BioArctic’s release included standard investigational-therapy language and disclosed that the information was provided under EU Market Abuse Regulation, noting there is no guarantee an investigational agent will complete clinical development or receive health authority approval.
Swedish biotech BioArctic has signed a research and collaboration deal with Eli Lilly worth up to $800 million, pairing BioArctic's blood-brain barrier delivery technology with an undisclosed Lilly drug candidate to treat neurodegeneration. BioArctic will receive $30 million upfront, with up to $770 million more in milestone payments if development targets are hit, according to Morningstar.
BioArctic CEO Gunilla Osswald said she was "proud that a large pharmaceutical company sees potential in our proprietary BrainTransporter technology." Lilly will take full control of global development and commercialization. BioArctic will also earn tiered mid-single-digit royalties on any future product sales.
How the BrainTransporter Ferries Drugs Into the Brain
The blood-brain barrier blocks nearly 100% of large biological drugs from reaching the brain. BioArctic's BrainTransporter technology works like a Trojan Horse. It attaches a therapeutic molecule to an antibody that binds to the transferrin receptor — a protein the brain uses to absorb iron. The drug essentially hitches a ride across the barrier. Preclinical data showed up to a 70-fold increase in brain penetration compared to standard antibodies, according to Simply Wall St.
BioArctic will design a new drug candidate that pairs this delivery platform with a Lilly molecule. The identity of that molecule has not been disclosed. Analysts speculate it could be a tau-targeting antibody or a next-generation amyloid-beta treatment intended to succeed Lilly's already-approved Alzheimer's drug Kisunla.
BioArctic Builds a Who's Who of Big Pharma Partners
The Lilly deal is BioArctic's fourth partnership built around the BrainTransporter platform. It follows earlier deals with Eisai in early 2024, a $1.35 billion agreement with Bristol Myers Squibb in December 2024, and a Novartis deal in August 2025 worth $30 million upfront and up to $772 million in milestones, according to Morningstar.
With Eisai, BMS, Novartis, and now Lilly all using the same delivery technology, industry observers say BioArctic is becoming a de facto standard for getting drugs into the brain. Importantly, BioArctic retains full rights to use the BrainTransporter platform for its own internal projects and any future partnerships beyond these four deals.
Lilly Doubles Down on Neurodegeneration After Kisunla Win
Eli Lilly is already a dominant force in Alzheimer's treatment following the 2024 approval of Kisunla. With projected 2026 revenues of $82–85 billion, Lilly has significant resources to push into next-generation brain therapies. Some analysts view this deal as a defensive move — ensuring no rival like Roche or Denali locks up the best blood-brain barrier delivery technology first.
Roche is developing its own competing approach called the Brain Shuttle, currently in Phase III trials. BioArctic's growing roster of partners puts direct pressure on that effort. For Lilly, securing the BrainTransporter now could mean faster, lower-dose treatments that patients receive by injection rather than lengthy IV infusions.
$30 Million Is Real Money; the $770 Million Is Still a Promise
BioArctic shares rose 1.1% on the Stockholm exchange after the announcement, opening at SEK 299.40 and reaching around SEK 303.00, according to Simply Wall St. The moderate gain suggests investors had expected another deal but welcomed Lilly's prestige. Goldman Sachs analysts had previously said additional BrainTransporter licensing deals were essential to justify further upside in BioArctic's valuation.
The $770 million headline figure is tied to back-end milestones that only pay out if development goes well. BioArctic's own announcement included standard regulatory language noting "there is no guarantee that an investigational agent will successfully complete clinical development." The $30 million upfront payment is guaranteed and non-dilutive — meaning BioArctic does not have to issue new shares to get it.
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