Eli Lilly Invests $1.3B in AI-Driven Obesity Drug Development Partnership

Eli Lilly and Company has announced a significant $1.3 billion partnership with Boston-based startup Superluminal Medicines, aiming to advance new small molecule treatments for cardiometabolic diseases and obesity. This collaboration marks a strategic move for Lilly to bolster its obesity pipeline, leveraging Superluminal's expertise in artificial intelligence and machine learning for drug discovery.

Partnership Details and Financial Terms

The partnership, revealed on Thursday, includes upfront payments, an equity investment, and potential development and commercial milestones. Superluminal stands to receive tiered royalties on net sales of any resulting products. While specific financial breakdowns were not disclosed, the total value of the deal is set at $1.3 billion.

This agreement builds upon an existing relationship between the two companies, as Lilly previously participated in Superluminal's $120 million Series A funding round in September 2024.

Focus on G Protein-Coupled Receptors

The collaboration will center on G protein-coupled receptors (GPCRs), which are common targets for drug developers due to their role in various physiological processes. Superluminal's current pipeline includes five molecules in development, all targeting GPCRs for endocrine and cardiometabolic diseases.

One of Superluminal's most advanced programs focuses on MC4R, a GPCR with genetic links to obesity. This molecule is currently in investigational new drug-enabling studies, while four other programs targeting unnamed GPCRs are in the lead generation stage.

Lilly's Strategic Investments in Drug Discovery

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

The Superluminal deal is part of a broader investment strategy by Lilly to enhance its pipeline. Recent moves include an $856 million agreement with Gate Biosciences for small molecule development and a $415 million licensing deal with Alchemab for an antisense oligonucleotide targeting ALS.