Eli Lilly Inks $1.65B Molecular Glue Deal with Magnet Biomedicine, Signaling Growing Interest in Protein Degradation

Eli Lilly has entered into a potentially $1.65 billion collaboration with Magnet Biomedicine to develop novel molecular glues for oncology applications, marking another significant investment in the burgeoning field of targeted protein degradation.

Deal Structure and Focus

The partnership, announced on February 28, 2025, includes up to $40 million in upfront and near-term payments to Magnet, along with an equity investment. The Boston-based precision medicine firm stands to earn over $1.25 billion in tiered royalties and milestone payments, contingent on meeting specific development, regulatory, and commercial goals.

At the heart of this collaboration is Magnet's TrueGlue platform, which will be utilized to discover new molecular glues. These sticky molecules are designed to bring targeted proteins together, inducing interactions that often lead to the destruction of disease-causing proteins through cellular protein degradation machinery.

Industry Trend and Competition

Lilly's move reflects a broader industry trend, with several major pharmaceutical companies making substantial investments in molecular glue technology. In 2024, Eisai signed a $1.5 billion deal with Seed Therapeutics to target neurodegeneration and oncology. More recently, AbbVie committed up to $1.64 billion in a partnership with Neomorph, a molecular glue specialist that has also secured billion-dollar agreements with Biogen and Novo Nordisk.

This latest deal builds on Lilly's existing interest in the field. In 2021, the company entered a similar arrangement with Lycia Therapeutics, potentially worth over $1.6 billion, focusing on molecular glues for immunology and pain targets. Lilly has also previously collaborated with Seed Therapeutics and invested in protein degrader Kymera Therapeutics.

Magnet's Background and Expertise

Magnet Biomedicine, which emerged in 2023 with a $50 million Series A funding round backed by Newpath Partners and Arch Venture Partners, brings significant scientific credibility to the partnership. The company's founders include Nobel Prize winner Michael Rosbash, Ph.D.

Brian Safina, Ph.D., CEO of Magnet, emphasized the potential of their approach: "This collaboration supports our differentiated approach and efforts to reimagine what's achievable through the next generation of molecular glues to drive breakthrough therapies. Lilly's commitment to innovation and deep expertise in bringing transformative medicines to patients make it an ideal partner for Magnet as we harness the untapped potential of molecular glues."