Eli Lilly Strikes $870M Deal with Camurus for Long-Acting Obesity and Diabetes Drugs

Eli Lilly has entered into a significant partnership with Swedish biotechnology firm Camurus, potentially worth up to $870 million, to develop long-acting versions of its obesity and diabetes medications. The collaboration aims to utilize Camurus' FluidCrystal technology to create extended-release formulations of Lilly's incretin-based drugs, potentially revolutionizing treatment options in the rapidly expanding cardiometabolic health market.

Deal Structure and Technology

Under the terms of the agreement, Lilly will pay Camurus up to $290 million in upfront, development, and regulatory milestone payments. An additional $580 million is tied to sales-based milestones, along with tiered mid-single-digit royalties on global net product sales.

Camurus' FluidCrystal technology allows for the methodical release of therapeutic substances over extended periods. After injection, the lipid-based solution transforms into a liquid crystalline gel upon contact with bodily fluids. This gel encapsulates the active ingredient, gradually degrading to release the medicine over days, weeks, or even months.

Expanding Lilly's Cardiometabolic Portfolio

The deal grants Lilly access to apply the long-acting technology to up to four of its compounds, including:

• Dual GIP and GLP-1 receptor agonists
• Triple GIP, glucagon, and GLP-1 receptor agonists
• Amylin receptor agonists (optional)

This collaboration could help Lilly extend the durability of its already successful weight-loss medicines, such as Mounjaro (tirzepatide) for diabetes and Zepbound for obesity. In the first quarter alone, these drugs generated sales exceeding $6 billion for Lilly.

Market Competition and Future Prospects

The partnership comes as Lilly faces increasing competition in the obesity and diabetes market. Rival Novo Nordisk has also been developing long-acting formulations, recently striking a deal with Ascendis for a once-monthly GLP-1 drug. Other companies entering the space include:

• Amgen, with its Phase III candidate MariTide, a once-monthly dual GLP-1 receptor agonist and GIP receptor antagonist
• Regeneron, which recently acquired ex-China rights to a GLP-1/GIP receptor agonist
• Roche, expanding its obesity pipeline through a $1.65 billion deal

Lilly's move to develop long-acting formulations could help maintain its market leadership as competitors work on newer options with less frequent dosing schedules. The company is also advancing its pipeline with other innovative approaches, including an oral GLP-1 medicine that recently showed promising results in a Phase III trial.

As the obesity and diabetes treatment landscape continues to evolve, this collaboration between Eli Lilly and Camurus represents a significant step towards developing more convenient and potentially more effective long-acting therapies for patients managing these chronic conditions.