Eli Lilly & Co. and Scios Inc. said they will work together to develop drugs to prevent or slow the progression of Alzheimer's disease. Eli Lilly will provide an undisclosed amount of research funding to Scios and will have the first opportunity to develop drug candidates to treat the crippling disease, which erodes memory and can affect walking, talking and other motor skills. Mountain View-based Scios may choose to develop other products from the collaboration, the companies said. The firm that decides to commercially develop a drug will make royalty payments to the other company. Other terms of the agreement weren't disclosed. This is the fourth research and development collaboration for Scios. The company said it teamed up with the Indianapolis-based drug maker because of Eli Lilly's expertise in developing and selling drugs to treat nervous-system diseases. Scios shares fell 25 cents to close at $5.50 on Nasdaq; Eli Lilly stock fell $2.875 to close at $87.50 on the New York Stock Exchange.