United States-based Eli Lilly and Company (NYSE: LLY) has signed a research collaboration and license agreement with Biolojic Design Ltd, a biotechnology company that computationally designs functional antibodies, it was reported on Monday.

The collaboration is intended to leverage Biolojic's AI-based multibody platform to discover and develop a potential novel antibody-based therapy for the treatment of diabetes.

According to the terms of the contract, Eli Lilly and Company is to pay research fees associated with the collaboration and additionally, Biologic is eligible to receive up to a total of USD121m, including potential development and commercialisation milestones and a promissory note that may be convertible into Biolojic equity at a future date. Biolojic is also eligible to receive tiered royalties in the low- to mid-single digits on product sales if Eli Lilly successfully commercialises a therapy from the partnership.