The TPD field targets hundreds of proteins that are known to be associated with human diseases but were previously thought to be undruggable. Seed Therapeutics, a subsidiary of BeyondSpring, has pioneered a strategy dubbed "molecular glue" to activate the protein degradation mechanism that is present in all cells to recognize and degrade the disease-causing protein. The molecular glue specifically focuses on new chemical entities with more drug-like chemical properties.

Lilly is giving Seed Therapeutics $10 million in upfront cash payments to fund research and a $10 million equity investment. Seed Therapeutics will also be eligible to receive up to approximately $780 million in potential preclinical and clinical development, regulatory, and commercial milestones. The firm may also receive tiered royalties on net sales of products that result from the collaboration. The transaction is subject to customary closing conditions, the firms said.