Eli Lilly and Prism BioLab Forge $600 Million Discovery Collaboration to Unlock New Drug Targets
In a landmark partnership, pharmaceutical giant Eli Lilly and Co. has teamed up with Prism BioLab in a discovery collaboration valued at over $600 million. This alliance leverages Prism BioLab’s cutting-edge small-molecule drug discovery platform, with the potential to revolutionize the identification of novel therapeutic targets.
Under the terms of the agreement, Eli Lilly will provide upfront payments to Prism BioLab, with the total potential milestones reaching up to $660 million, in addition to royalties on the net sales of any resulting compounds. The collaboration centers on the use of Prism’s proprietary PepMetics technology to discover small-molecule inhibitors that can disrupt protein-protein interactions (PPIs), a class of targets historically considered challenging to drug.
Prism BioLab’s CEO, Dai Takehara, expressed confidence that their technology “will change the current paradigm in drug discovery,” by transforming elusive PPIs into accessible targets for small-molecule therapeutics. The partnership aims to expand the range of druggable targets, ultimately translating into new treatment options for patients.
Lilly retains the option to expand the collaboration to include up to two additional targets and will be responsible for the clinical development and commercialization of any products that emerge from this joint effort.
This is not the first foray into big pharma partnerships for Prism BioLab. The Japan-based company has previously established discovery collaborations with industry heavyweights such as Roche, Genentech, and Ohara Pharma, and has successfully out-licensed two clinical-stage compounds aimed at treating cancer and fibrosis.
Prism BioLab has also garnered investment from Eisai, another Japanese biopharma firm, which contributed approximately $675,000 through its corporate venture investment arm during a Series C funding round in 2021. Eisai has further engaged in licensing and joint research agreements utilizing Prism’s drug discovery platform.
Eli Lilly, on the other hand, has been actively expanding its research and development partnerships, including a recent collaboration with Shenzhen-based Xtalpi, an AI-driven drug discovery firm, in a deal worth up to $250 million. Xtalpi’s research focuses on diseases currently lacking effective treatments.
The Indianapolis-based drugmaker, which recently achieved a market capitalization exceeding $500 billion, bolstered by its successful obesity and Alzheimer’s medications, continues to be a prominent player in strategic acquisitions. Notable transactions include the $1.4 billion purchase of Point Biopharma, as well as acquisitions of European biotechs Mablink Bioscience and Emergence Therapeutics.
Lilly’s recent acquisitions, such as Sigilon Therapeutics and Versanis, have strengthened its diabetes and obesity portfolio, and the $2.4 billion acquisition of Dice Therapeutics this summer further underscores its commitment to innovation.
