Inhale Therapeutic Rises on Lilly Accord

Inhale Therapeutic Systems shares rose 13% after the company said Eli Lilly & Co. will pay up to $20 million to develop a drug for lung disease that can be inhaled instead of injected. Shares of San Carlos-based Inhale Therapeutic rose $3.50 to close at $31.38 on the Nasdaq. Inhale Therapeutic will get funds for research, development and milestone payments to develop a pulmonary delivery system for a protein drug, as well as royalties on eventual sales. Lilly will get global marketing rights, and Inhale Therapeutic will supply the devices. Inhale Therapeutic and Indianapolis-based Lilly already are working together on a pulmonary delivery system for an osteoporosis product. Lilly shares fell $1.25 to $70.69 on the New York Stock Exchange.