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

Oct 5 (Reuters) - Gate Bioscience said on Monday it expanded a research and ‌licensing agreement with Eli Lilly 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.

• 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)