Lilly Bets Big on Oral Obesity Drug in New $1.3B Nimbus Pact
The deal aims to crack the next frontier in weight-loss treatment, expanding Lilly's arsenal beyond its blockbuster injectable drugs Zepbound and Mounjaro.
Eli Lilly is deepening its investment in the next generation of weight-loss treatments, announcing a new research and licensing deal with Nimbus Therapeutics to develop a novel oral obesity drug. The partnership, which could be worth up to $1.3 billion, signals a major strategic push to dominate the rapidly growing market by offering an alternative to popular injectable therapies.
Under the terms announced Tuesday, Lilly will pay Nimbus Therapeutics $55 million in upfront and near-term milestone payments. Nimbus is also eligible for up to approximately $1.3 billion in additional payments based on development, commercial, and sales milestones, as well as tiered royalties on future global sales. The collaboration will leverage Nimbus's AI-driven drug discovery platform to advance an early-stage program targeting a novel pathway for metabolic diseases.
Shares of Eli Lilly rose on the news, trading up nearly 1% to over $1051 in midday trading Tuesday, pushing its market capitalization toward $970 billion. The move reflects investor confidence in Lilly's strategy to build on the success of its injectable GLP-1 agonists, Zepbound and Mounjaro, which have become blockbuster drugs for diabetes and weight loss.
The strategic imperative for a powerful oral drug is clear. While injectables have proven highly effective, the development of a convenient, daily pill is seen as the next major growth vector for the estimated $100 billion obesity drug market. An effective oral option could attract a wider range of patients and provide a competitive edge. This new pact is Lilly's second major bet in the oral obesity space, complementing its existing late-stage candidate, orforglipron.
"This agreement with Nimbus highlights Lilly's commitment to exploring diverse, scientifically-backed approaches to obesity treatment," noted an analyst from a top-tier investment bank. "While Zepbound's efficacy is the current gold standard, the race for a highly effective, well-tolerated oral treatment is the next critical battleground."
This battle is largely being fought against Danish rival Novo Nordisk, which markets the injectable Wegovy and recently launched an oral version of the same active ingredient. According to recent reports, the competitive landscape is intensifying as both pharmaceutical giants vie for dominance. Lilly's partnership with Nimbus represents a move to out-innovate its rival by exploring new biological targets beyond the established GLP-1 pathway.
The collaboration builds on a previous successful relationship between the two companies. Lilly acquired a different Nimbus asset in 2023, which is now part of its cardiometabolic pipeline. This history suggests confidence in Nimbus's structure-based drug design capabilities.
While the deal's full $1.3 billion value is contingent on long-term success, the upfront commitment strengthens Lilly's pipeline in the most lucrative segment of the pharmaceutical industry. For Nimbus, a private, venture-backed biotech, the partnership provides significant non-dilutive funding and a powerful commercial partner to bring a potential therapy to market.
The road ahead is long; the partnered program is still in its early discovery phase. It will require years of clinical trials and regulatory scrutiny before it could reach patients. However, the investment underscores Lilly's aggressive, multi-pronged strategy to maintain its leadership in the metabolic disease space for years to come, ensuring it has promising candidates ready to follow its current generation of blockbuster drugs.