Gate Bioscience Expands Lilly Collaboration, Deal Value Could Exceed $870 Million

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Summary · why it matters

Gate Bioscience has expanded its collaboration and license agreement with Eli Lilly and Company to discover, develop, and commercialize molecular gate therapeutics. The multi-year expansion adds one target, with the opportunity to add a second target, to the companies' existing work under their 2025 agreement, using Gate's Molecular Gate drug discovery engine to eliminate difficult-to-drug proteins. Under the terms, Gate will receive an upfront payment and a subsequent payment upon selection of the second target, plus research funding, and will be eligible for preclinical, clinical, and commercial milestone payments and tiered royalties on global net sales, with the total potential value of the agreement exceeding $870 million contingent on milestone achievement. Lilly receives an exclusive, worldwide license to research, develop, and commercialize products arising from the collaboration for the selected targets. Gate will lead discovery efforts while advancing its wholly owned portfolio of molecular gate medicines toward the clinic, and Lilly will handle later-stage preclinical development, clinical development, manufacturing, and commercialization.

Impact on assets 1

Biotech & Genomic Medicine▲ · 1 stocks
Eli Lilly and Company
LLY
▲ PositiveDemandrelevance

Lilly expands its collaboration with Gate, gaining an exclusive worldwide license to develop and commercialize molecular gate therapeutics for additional targets.

Off-coverage companies 1

Gate BiosciencePrivate▲ Positive
Demandrelevance

Gate expands its Lilly collaboration, adding a target and receiving upfront, research funding, milestones, and royalties potentially exceeding $870 million.

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