Eli Lilly inks $1.3B AI deal with Superluminal for obesity drugs
Pharmaceutical giant Eli Lilly has inked a substantial $1.3 billion agreement with privately held Superluminal Medicines, aiming to leverage artificial intelligence (AI) for the discovery and development of small-molecule drugs. These therapies are intended to combat obesity and other cardiometabolic diseases, a cluster of conditions affecting the heart and metabolism.
This strategic partnership underscores Lilly’s aggressive efforts to solidify its leading position in the burgeoning obesity treatment market, which analysts project will reach an impressive $150 billion within the next decade. The company is actively pursuing a multi-pronged strategy involving the development of next-generation therapies, key acquisitions, and strategic alliances to expand its influence in this lucrative sector.
Under the terms of the deal, Lilly gains exclusive access to Superluminal’s proprietary AI-driven platform. This advanced technology is designed to rapidly identify potential drug candidates by targeting G-protein-coupled receptors (GPCRs). These are a crucial class of proteins that play a fundamental role in various physiological processes, including metabolism, cell growth, and immune responses, making them attractive targets for drug development. Lilly will hold exclusive rights to develop and commercialize any drug candidates unearthed through this platform. In return, Superluminal is eligible to receive a combination of upfront and milestone payments, an equity investment from Lilly, and tiered royalties based on future net sales of any successful drugs.
The move by Lilly mirrors a similar, significant investment made by its Danish rival, Novo Nordisk. In May, Novo Nordisk finalized a $2.2 billion deal with U.S. biotech Septerna, also focused on developing oral small-molecule medicines that target GPCRs for the treatment of obesity and other cardiometabolic conditions. This parallel activity highlights a growing industry trend towards harnessing advanced computational methods and specific protein targets in the race for innovative treatments.
Lilly has already seen immense success with its GLP-1 class of medicines, notably its blockbuster drug Zepbound, which competes with Novo Nordisk’s Wegovy. While the company is also developing orforglipron, an eagerly anticipated oral GLP-1 drug, it has reportedly not yet met the high expectations of investors. Beyond the Superluminal deal, Lilly expanded its pipeline last year through a collaboration with Hong Kong-listed biotech Laekna, focusing on an experimental obesity drug designed to help patients lose weight while crucially preserving muscle mass.
Boston-based startup Superluminal Medicines, backed by investors including RA Capital Management, Insight Partners, and NVIDIA’s venture capital arm NVentures, is also pursuing its own research initiatives. The company is independently developing a lead candidate that targets a protein called melanocortin 4 receptor. This particular drug is aimed at treating certain rare, genetic forms of obesity and is anticipated to commence human trials next year. It is important to note that this wholly-owned lead candidate is separate from the collaboration agreement with Eli Lilly.
The increasing reliance on AI in drug discovery, exemplified by these high-value partnerships, signals a transformative shift in the pharmaceutical industry’s approach to tackling complex diseases like obesity. Companies are clearly looking to accelerate the notoriously long and expensive drug development cycle by leveraging powerful computational tools to identify promising new therapies more efficiently.