Arnold Bloch Liebler has acted for Melbourne-based biotechnology firm Acrux in Australia's largest biotech deal.
Acrux entered into an exclusive worldwide licensing agreement with US pharmaceutical giant Eli Lilly, which has sales, marketing and distribution capability across 143 countries.
The licensing agreement, valued at up to $US335 million ($368 million), will give Eli Lilly exclusive access to Acrux's new product Axiron, which is used for the treatment of testosterone deficiency in men.
Acrux will receive an up-front payment of US$50 million, plus US$3 million for the manufacturing assets. Upon approval from the US Food and Drug Administration's to market Axiron, Acrux will receive a further US$87 million.
If successfully commercialised, Acrux will potentially receive up to US$195 million in commercialisation milestones, as well as royalty payments on any future global sales.
Acrux's chairman, Ross Dobinson, believes this to be the largest licensing deal ever struck by an Australian biotech company.
The deal was led by partner Jane Sheridan, with the assistance of lawyer Amanda Hutchings.