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 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