Seragen's just-in-time partnership

Seragen Inc., with less than six months of cash, has found a strategic alliance in the nick of time.
The company said Friday that it had signed a letter of intent giving Eli Lilly and Co. exclusive worldwide rights to SRGN's Interleukin-2 Fusion Toxin in cancer.
The deal allows Lilly to acquire SRGN's oncology portfolio for a down payment of about $10 million, with another $35 million contingent on milestones and the pharma company's assessment of the technology.
Specifically, Lilly will pay $5 million for an undisclosed number of SRGN shares at a premium to the market price, which would give Lilly about a 5 percent equity stake. The Hopkinton, Mass., company has 15.4 million shares outstanding prior to the Lilly investment.