Lilly forms new critical care company

Lilly has announced the formation of a new company specialising in critical care, with the support of private investors.

The pharmaceuticals firm is allying with Care Capital and NovaQuest Capital to establish BioCritica, a privately-held biotechnology firm based in Indiana.

This agreement also includes a licensing arrangement that will see BioCritica acquire development and commercialisation rights to Lilly's severe sepsis drug Xigris in the US, with an option to extend this deal globally at a later date.

Lilly will receive an equity stake in the new company, which it hopes will become an important partner in critical care medicine development, with further licensing deals for BioCritica to acquire other pre-clinical compounds also planned.

Dr John Lechleiter, Lilly's president, chairman and chief executive officer, said: "We are confident that BioCritica will help realise the full potential for Xigris, while working to develop new critical care medicines. We look forward to working with BioCritica to help ensure its success."

According to the company's most recent financial report last month, Lilly saw a six percent year-on-year growth in total revenue in the first quarter of 2011.