Eli Lilly and Nimbus Therapeutics announced a multi‑year research collaboration and exclusive worldwide license to develop a novel oral obesity therapy, expanding Lilly’s obesity portfolio beyond its injectable GLP‑1 drugs Mounjaro and Zepbound.
The partnership leverages Nimbus’s AI‑driven computational platform to accelerate discovery of small‑molecule candidates targeting metabolic pathways, while Lilly brings its manufacturing and commercialization expertise. This positions Lilly to offer an oral alternative, addressing patient preference for oral therapy and expanding its market share in the growing obesity treatment space.
The new agreement builds on a prior October 2022 collaboration valued at up to $496 million, which included research funding, milestone payments, and tiered royalties. The current deal includes upfront and near‑term milestone payments totaling $55 million, with potential for up to $1.3 billion in total payments, aligning incentives for both parties.
The oral program is a small‑molecule discovery effort; while the exact target remains confidential, Nimbus’s platform has previously identified candidates such as NDI‑219216 (WRN inhibitor) and a SIK2 inhibitor, demonstrating a track record of advancing novel metabolic targets.
Lilly’s injectable GLP‑1 drugs generate strong revenue, but injection adherence is a barrier. An oral therapy would tap into a market where competitors like Novo Nordisk and other biotech firms are developing oral candidates, meeting demand for convenient, long‑term weight‑loss solutions.
Ruth Gimeno, Lilly’s Group Vice President of Diabetes and Metabolic Research, said the partnership “leverages Nimbus’s exceptional AI capabilities to tackle complex drug discovery challenges and represents an important addition to Lilly’s obesity pipeline.” Peter J. Tummino, Nimbus President, highlighted the excitement of collaborating with Lilly’s metabolic expertise.
In pre‑market trading, Lilly’s shares fell 3.6 percent, a decline attributed to broader market volatility and strategic positioning ahead of upcoming data releases rather than a negative reaction to the Nimbus deal. Analysts noted that the partnership is a positive long‑term development but did not view it as a catalyst for immediate stock movement.
The collaboration is expected to accelerate Lilly’s entry into the oral obesity market, potentially expanding its revenue base and diversifying its product mix. The partnership also strengthens Lilly’s position against competitors and aligns with the company’s strategy to grow its obesity portfolio beyond injectable therapies.
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