Gate Bioscience expands Lilly drug discovery deal worth more than $870 million

Eli Lilly and

05/10/2026 13:33

Oct 5 (Reuters) - Gate Bioscience said on Monday it expanded a research and licensing agreement with Eli Lilly LLY.N to develop treatments targeting disease-causing proteins, in a deal potentially worth more than $870 million.
The companies' original agreement, announced in July 2025, was worth up to $856 million.

Here are key details: 
The expanded collaboration adds one drug target, with an option to add a second
Gate will receive an upfront payment and research funding, as well as an additional payment if the second target is selected
The companies did not disclose the upfront payment
Privately held Gate Bioscience will use its platform to discover oral small-molecule drugs designed to eliminate proteins that have been difficult to target with existing medicines
Gate will lead the discovery work, while Lilly will handle late-stage preclinical and clinical development, manufacturing and commercialization
Lilly will have exclusive worldwide rights to products developed for the selected targets
Gate is also eligible for milestone payments and royalties on global sales

 (Reporting by Siddhi Mahatole in Bengaluru; Editing by Tasim Zahid)
 ((siddhi.mahatole@thomsonreuters.com;))