Eli Lilly Partners with Camurus to Develop Long-Acting Obesity and Diabetes Treatments in $870M Deal

Eli Lilly has entered into a licensing agreement with Swedish pharmaceutical company Camurus, leveraging the latter's FluidCrystal technology to develop long-acting formulations of its incretin-based compounds for obesity and diabetes. The deal, which could be worth up to $870 million, signifies Lilly's commitment to expanding its portfolio in the rapidly growing cardiometabolic health space.

Deal Structure and Financial Terms

Under the terms of the agreement, Lilly gains access to Camurus' FluidCrystal technology for up to four of its incretin compounds. These include dual GIP and GLP-1 receptor agonists, triple GIP, glucagon and GLP-1 receptor agonists, with an option to include amylin receptor agonists.

Camurus stands to receive up to $290 million in upfront, development, and regulatory milestone payments. Additionally, the company is eligible for $580 million in sales-based milestone payments and tiered mid-single-digit royalties on global net product sales.

FluidCrystal Technology and Long-Acting Formulations

Camurus' FluidCrystal technology is designed to deliver drug substances over extended periods, utilizing prefilled syringes or autoinjector pens. The lipid solution forms a liquid crystalline gel upon contact with bodily fluids, encapsulating the active ingredient. As the liquid matrix breaks down, it releases the drug slowly, potentially providing sustained benefits for days to months.

This technology could significantly enhance Lilly's existing portfolio of obesity and diabetes drugs, including the GIP/GLP-1 receptor agonist tirzepatide (marketed as Zepbound for obesity and Mounjaro for diabetes), by developing longer-acting formulations that may improve patient compliance and outcomes.

Lilly's Cardiometabolic Pipeline and Market Positioning

The collaboration with Camurus aligns with Lilly's robust cardiometabolic pipeline, which includes several promising candidates:

• Retatrutide: A GIP/GLP-1/glucagon receptor agonist
• Orforglipron: A GLP-1 receptor agonist
• Eloralintide: An amyloid receptor agonist

Lilly is also exploring higher doses of tirzepatide and its potential in other indications, such as metabolic dysfunction-associated steatohepatitis (MASH).

This strategic move positions Lilly to compete more effectively in the long-acting obesity drug market, where competitors like Metsera are making progress with ultra-long-acting GLP-1 candidates aimed at monthly dosing regimens.