Under the terms of the agreement, Lilly will have a license to select Regor's intellectual property, with an option to extend the license. Lilly is responsible for clinical development, manufacturing, and commercialization worldwide, except for the People's Republic of China, Macau, Hong Kong, and Taiwan, where Regor will maintain these rights and responsibilities.

In addition, the agreement allows Lilly and Regor to leverage both parties' existing compounds and technologies globally. Regor will receive an upfront payment of up to $50 million, which partially includes an equity investment by Lilly in Regor, subject to the parties entering into standard equity agreements. Regor is also eligible to receive up to $1.5 billion in potential payments based on the achievement of prespecified preclinical, clinical development, and commercial milestones, as well as tiered royalties from sales resulting from the agreement.

The transaction will be reflected in Lilly's reported results and financial guidance, according to generally accepted accounting principles (GAAP). There will be no change to Lilly's 2021 non-GAAP earnings per share guidance from this transaction, Lilly stated.