Blacksmith Medicines Inc, a recent spin-out of Forge Therapeutics that is pioneering a novel metalloenzyme chemistry platform to create new immuno-oncology and inflammation medicines, has received seed funding and signed a research collaboration with United States-based Eli Lilly and Company, it was reported on Friday.

Both firms will partner on up to five human metalloenzyme targets, with Blacksmith advancing novel small molecule inhibitors from fragment to 'hit' stage, after which, Lilly has the right to continue research, development, and commercialisation.

Under the agreement, Blacksmith will receive an upfront payment and an investment from Eli Lilly in exchange for a convertible note and will be eligible for up to around USD60m per target in potential research, development and commercial milestones, for a total potential deal size up to USD300m.