Eli Lilly and Co (NYSE:LLY) has entered into a $1.3 billion deal with Superluminal Medicines to develop small-molecule drugs through artificial intelligence (AI) to treat obesity and other cardiometabolic diseases.
Lilly Partners With Superluminal For AI-Driven GPCR Drugs
Eli Lilly, under a deal announced Thursday, has secured exclusive rights to develop and commercialize drug candidates identified through Superluminal’s AI-powered platform focused on G-protein-coupled receptors (GPCR), reported Reuters.
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GPCRs are a type of protein involved in numerous physiological functions, such as metabolism, cell growth, and immune regulation. The agreement aligns with Lilly's strategy to bolster its presence in the obesity treatment market, which is expected to reach $150 billion within the next decade.
As part of the agreement, Superluminal will receive upfront and milestone payments, an equity stake, and tiered royalties based on net sales.
Bold Moves Amid Fierce Novo Nordisk Competition
The obesity treatment market is highly lucrative, and Lilly’s deal with Superluminal is part of its broader efforts to maintain its leading position in this space. This deal follows Lilly’s recent moves in the obesity drug market, including a price increase for Mounjaro in the UK and expansion in India. The actions highlight intensifying competition with Danish rival Novo Nordisk A/S (NYSE:NVO) in the highly profitable obesity drug market.
Legal Challenges, Trial Setbacks Amid Obesity Drug Push
However, Lilly’s obesity drug development has not been without challenges. The company is also facing legal challenges over an alleged conspiracy to restrict a government-mandated drug discount program. Amidst these developments, Lilly also released less-than-stellar data from a Phase 3 trial of its investigational drug orforglipron. The partnership with Superluminal could potentially bolster Lilly’s position in the obesity treatment market.
According to Benzinga Edge Stock Rankings, Eli Lilly has a growth score of 99.45% and a quality rating of 91.88%. Click here to see how it compares to other leading pharma companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
