Eli Lilly Commits $856M to Gate Bioscience for Novel 'Molecular Gates' Technology
Eli Lilly and Company has entered into a significant collaboration with Gate Bioscience, a California-based biotech startup, in a deal worth up to $856 million. The partnership aims to develop a new class of therapeutic molecules called 'molecular gates,' which could potentially address a range of difficult-to-treat diseases.
Deal Structure and Financial Details
The agreement includes an undisclosed upfront payment and equity investment from Lilly, along with potential development, regulatory, and commercial milestone payments. Gate Bioscience will also be eligible for tiered royalties on global sales of any resulting products.
While specific financial breakdowns were not disclosed, the total potential value of the deal reaches $856 million in biobucks. This partnership marks Gate Bioscience's first publicly announced collaboration since its founding in 2021.
'Molecular Gates' Technology
Gate Bioscience's proprietary technology focuses on developing small molecule therapeutics that can selectively block the passage of disease-causing proteins through the endoplasmic reticulum. This approach aims to prevent harmful proteins from being secreted from cells, potentially stopping disease progression at its source.
The company touts several potential advantages of this technology:
- Oral drug delivery potential
- Ability to cross the blood-brain barrier
- Applicability to a wide range of diseases, including inflammatory conditions, neurodegenerative diseases, and certain cancers
Dr. Jordi Mata-Fink, CEO and co-founder of Gate Bioscience, stated, "This collaboration fuels our vision to make molecular gates into medicines. Our drugs eliminate disease-causing proteins at their source with a convenient pill."
Lilly's Strategic Expansion
This collaboration is part of Lilly's broader strategy to bolster its pipeline through partnerships and acquisitions. In recent months, the pharmaceutical giant has engaged in several significant deals:
- A partnership with Camurus worth up to $870 million for long-acting obesity drugs
- A $650 million collaboration with Juvena to develop muscle-preserving drugs
- The $1.3 billion acquisition of gene editing company Verve Therapeutics
Gate Bioscience will also receive preclinical R&D support from Lilly ExploR&D, part of the Lilly Catalyze360 early-stage biotech ecosystem program. This program has previously established partnerships with siRNA-focused Insitro and antibody biotech Oblique Therapeutics.
References
- Eli Lilly Commits $856M in Biobucks to Gate Bioscience for New Class of Medicines
The collaboration focuses on ‘molecular gates,’ a class of molecules that the startup company Gate Bioscience says can stop pathogenic proteins from leaving the cell.
- Lilly opens Gate to new small-molecule drug class with $856M biobucks deal
Eli Lilly is walking through the Gate, inking a deal worth up to $856 million with a biotech aiming to build out a new small-molecule drug class.
Explore Further
What are the key terms and structure of the collaboration agreement between Eli Lilly and Gate Bioscience?
What competitive advantages does the 'molecular gates' technology have over existing therapies for difficult-to-treat diseases?
Who are the main competitors of Gate Bioscience in the field of small molecule therapeutics targeting disease-causing proteins?
What are the potential market opportunities for the application of 'molecular gates' technology in inflammatory conditions, neurodegenerative diseases, and cancers?
Have there been recent similar BD transactions in the pharma and biotech industry that could indicate a trend towards targeting disease-causing proteins?