Eli Lilly Expands Obesity Pipeline with $1.3B Superluminal Partnership

Eli Lilly and Company has announced a significant partnership with Boston-based AI/ML startup Superluminal Medicines, valued at $1.3 billion. This collaboration aims to advance new small molecules for cardiometabolic diseases and obesity, focusing on G protein-coupled receptors (GPCRs).

Deal Structure and Focus

The partnership, announced on Thursday, includes upfront payments, an equity investment, and potential development and commercial milestones, as well as tiered royalties on net sales. While specific financial breakdowns were not disclosed, the deal underscores Lilly's commitment to strengthening its position in the competitive obesity drug market.

Superluminal Medicines, founded in 2022, specializes in using artificial intelligence and machine learning techniques to generate biomolecule structures and produce therapeutic molecules de novo. The company's expertise in endocrine and cardiometabolic diseases aligns with Lilly's strategic focus on obesity treatment.

Superluminal's Pipeline and Expertise

Superluminal currently has five molecules in development, all targeting GPCRs for various endocrine and cardiometabolic diseases. One notable target is MC4R, a GPCR for which genetic deficiency is the most common single-gene link to obesity. This MC4R-targeting molecule is currently in investigational new drug-enabling studies, while four other programs aimed at unnamed GPCRs are in the lead generation stage.

Lilly's Recent Developments and Strategy

This partnership comes on the heels of mixed results from Lilly's Phase III trials for orforglipron, their next-generation oral obesity medication. Despite achieving an average weight loss of 12.4%, the drug fell short of analyst comparisons to Novo Nordisk's injectable obesity drug semaglutide, which has demonstrated a 13.7% average weight loss. Nevertheless, Lilly plans to file for FDA approval for orforglipron by the end of the year.

The Superluminal deal is part of a broader strategy by Lilly to bolster its pipeline. Recent investments include an $856 million deal with Gate Biosciences for developing small molecules against "molecular gates" and a $415 million agreement with Alchemab to license an antisense oligonucleotide for ALS.