PeptiDream Inc., , Japan-based biopharmaceutical company, has announced new multi-target collaboration and license agreements with US-based Merck & Co, Inc., known as MSD outside the U.S. and Canada, through a subsidiary, and with US-based Eli Lilly, focused on the discovery and development of novel peptide drug conjugates (PDCs).

Under the agreement, PeptiDream will provide peptide candidates identified from PeptiDream’s proprietary Peptide Discovery Platform System (PDPS) technology for use as PDCs against targets of interest to MSD.

PeptiDream will receive an upfront payment from MSD and be eligible for payments based on the achievement of specified development, regulatory, and commercial milestones potentially totaling up to $2.1 billion.

On the other hand, PeptiDream will utilise its PDPS technology to identify high affinity macrocyclic peptide ligands to Eli Lilly-elected targets of interest, capable of delivering a conjugated payload to certain cells and tissues of interest to Eli Lilly. PeptiDream will receive an upfront payment as well as be eligible for payments based on the achievement of specified development, regulatory, and commercial milestones potentially totaling up to $1.235 billion.