Gate Bioscience Partners with Lilly in $856 Million Deal to Develop Novel Molecular Gate Therapeutics
Key Insights
Gate Bioscience (search) announced a collaboration and license agreement with Eli Lilly to discover and develop molecular gate therapeutics, a new class of small molecule drugs that eliminate disease-causing proteins at their source.
The partnership combines Gate's molecular gate drug discovery engine with Lilly's expertise in small molecule therapeutics to target difficult-to-drug proteins for diseases with high unmet medical need.
Under the agreement terms, Gate will receive an upfront payment, equity investment, milestone payments, and tiered royalties with a total deal value up to $856 million.
Gate Bioscience (search), a biotechnology company developing molecular gates (search), announced a collaboration and license agreement with Eli Lilly and Company to discover, develop, and commercialize molecular gate therapeutics. The partnership represents a significant milestone for the emerging field of protein elimination therapy, with a total deal value reaching up to $856 million.
Novel Mechanism of Action
The collaboration will leverage Gate's molecular gate drug discovery engine to identify molecular gates (search) capable of eliminating specific difficult-to-drug proteins, bringing forth medicines with a new mechanism of action for diseases of high unmet medical need. Gate Bioscience (search) is creating a new class of medicines called molecular gates, small molecules that eliminate disease-causing secreted or membrane proteins (search) at their source.
"This collaboration fuels our vision to make molecular gates (search) into medicines," said Jordi Mata-Fink, Ph.D., co-founder and CEO of Gate. "Our drugs eliminate disease-causing proteins at their source with a convenient pill. Lilly's expertise in developing innovative therapeutics to address unmet medical needs for the benefit of patients stands apart. Lilly is an ideal partner for Gate as we develop the first wave of molecular gate drugs."
How Molecular Gates Work
Secreted and membrane proteins (search) pass through a common channel in the cell before they are secreted into the body. Molecular Gates (search) recognize and block a specific protein from crossing the channel, causing it to be degraded by the cell instead of being secreted. By eliminating the harmful protein at its source, Gate aims to eliminate the disease for patients.
Financial Terms and Support
Under the terms of the agreement, Gate will receive an upfront payment and equity investment and will be eligible to receive milestone payments upon achievement of certain development, regulatory, and commercial milestones, as well as tiered royalties on global net sales. Gate can also receive certain preclinical R&D support from Lilly ExploR&D, a pillar of Lilly Catalyze360, for their internal programs.
Strategic Partnership Benefits
"Lilly has shown its commitment to building the biotech ecosystem through win-win partnerships with innovative start-up companies," said Vineeta Agarwala, M.D., Ph.D., board member at Gate and general partner at a16z Bio + Health (search). "With this collaboration, Lilly gains access to a transformative new drug modality and Gate taps into Lilly's deep expertise in delivering meaningful therapeutics. Ultimately, patients will be the big winners."
Founded in 2021, Gate is backed by Versant Ventures (search), a16z Bio + Health (search), ARCH Venture Partners (search), and GV (search). The collaboration combines Gate Bioscience (search)'s Molecular Gate drug discovery engine with Lilly's expertise in small molecule therapeutics, positioning both companies to advance this novel therapeutic approach through clinical development.