Eli Lilly Bets on Oral Obesity Drug in $1.3B Nimbus Pact
Deal reinforces Lilly's strategy to dominate the next wave of metabolic disease therapies, expanding its pipeline beyond injectable treatments.
Eli Lilly is deepening its commitment to the lucrative obesity drug market, announcing a research and licensing agreement with Nimbus Therapeutics to develop a novel oral obesity treatment. The deal, potentially worth up to $1.3 billion, signals a strategic move to build a portfolio of next-generation weight-loss therapies beyond its blockbuster injectable drugs.
Under the terms of the agreement, Lilly will pay Nimbus a $55 million upfront fee. Nimbus, a biotech company known for its AI-powered drug discovery platform, is eligible for up to $1.3 billion in additional payments contingent on development and commercial milestones, plus tiered royalties on future sales. Shares of Eli Lilly rose modestly on the news, trading up about 1.1% to $1,052.70 in recent trading, reflecting investor confidence in the company's long-term growth strategy.
The collaboration will focus on a preclinical small-molecule drug that activates a specific protein kinase, a mechanism with potential applications in treating metabolic diseases. This new pact builds on an existing relationship between the two companies, which have been collaborating on therapies for metabolic diseases since 2025. "This represents an important addition to Lilly’s efforts to advance innovative treatment options for patients with metabolic disorders," said Ruth Gimeno, group vice president of diabetes, obesity and cardiometabolic research at Lilly.
Lilly is already a dominant force in the weight-loss market with its dual GIP/GLP-1 agonist Zepbound, which has seen near-parabolic sales growth since its launch. The company's market capitalization has swelled to nearly $1 trillion, largely on the success of Zepbound and its diabetes counterpart, Mounjaro. However, the pharmaceutical giant is not resting on its laurels. The development of an effective oral treatment is seen by many analysts as the next frontier in the battle for supremacy in a market projected to reach $150 billion by the early 2030s.
Oral medications are often preferred by patients over injections, and an easy-to-take pill could significantly expand the market for obesity treatments. Lilly's most advanced oral candidate is orforglipron, a GLP-1 agonist that has shown promising results in clinical trials. The company anticipates a potential regulatory submission for orforglipron in 2026. This deal with Nimbus provides another shot on goal, diversifying the technological approaches within Lilly's own pipeline.
The move is also a clear response to a competitive landscape dominated by its chief rival, Novo Nordisk, the maker of Wegovy and Ozempic. Novo Nordisk is also aggressively pursuing an oral version of its active ingredient, semaglutide. The competition to bring a safe, effective, and convenient pill to market is one of the most closely watched races in the pharmaceutical industry. Analysts at Leerink Partners have projected that the oral obesity market will be a key driver of Lilly's revenue growth, which they forecast could reach nearly $95 billion by 2027.
Nimbus Therapeutics brings a unique advantage to the partnership. The company utilizes computational chemistry and artificial intelligence to design drug candidates, a process that can be faster and more precise than traditional methods. "This renewed collaboration with Lilly is a testament to the significant progress we've made and our shared commitment to addressing the global health challenge of metabolic diseases," a Nimbus spokesperson commented.
For Eli Lilly, the Nimbus deal is a calculated, capital-efficient way to bolster its research and development pipeline without a full-scale acquisition. By leveraging Nimbus's discovery engine, Lilly gains access to cutting-edge science while focusing its internal efforts on late-stage development and commercialization. This strategy allows the pharma giant to maintain its leadership position as the science of obesity treatment continues to evolve at a breakneck pace.