Lilly Hops On Hot Molecular Glue Train With $1.6B+ Magnet Deal

 

The molecular glue space has attracted several Big Pharma players over the past few years, including Novo Nordisk, Pfizer and Novartis.

Eli Lilly on Friday put more than $1.6 billion on the line in a licensing deal with Boston biotech Magnet Biomedicine, adding another pharma powerhouse to the already-crowded, already-competitive molecular glue space.

As per the agreement, Lilly will front $40 million, an amount that includes an equity investment into the biotech and which will account for the deal’s upfront and near-term considerations. Magnet will then be entitled to certain development, regulatory and commercial milestones potentially exceeding $1.25 billion in value.

In exchange for its investment, Lilly will gain access to Magnet’s proprietary TrueGlue discovery technology. According to Magnet’s website, its platform makes use of “state-of-the-art screening technologies,” alongside an extensive exclusive library, to systematically discover potential small-molecule drug candidates that can bridge a disease target and another protein.

In turn, these small molecules, which the biotech calls “TrueGlues,” can enable precise targeting and open up access to targets that have historically been difficult to reach, using the secondary protein connected by the TrueGlue as a path to targeting the disease-causing protein.

The partners did not reveal what their priority targets would be, nor did they disclose the therapeutic areas they will focus on. In its news release on Friday, Magnet only revealed that the collaboration would be broad, “spanning multiple diseases with unmet medical need.”

Also under Friday’s agreement, Magnet will be eligible for tiered royalties on global net sales of any product that results from the partnership.

Lilly is the latest Big Pharma to enter the molecular glue market. Last month, AbbVie bet up to $1.64 billion on the technology in a partnership with Neomorph targeting immunology and oncology indications. The California-based biotech is a popular partner in the space—it also bagged a potential $1.46 billion contract with Novo Nordisk in February 2024, followed by a deal with Biogen for up to $1.45 billion in October 2024.

Also in October 2024, Novartis joined its fellow industry heavy hitters with a $150 million upfront payment to Monte Rosa Therapeutics, gaining access to the Boston biotech’s molecular glue degraders targeting the VAV1 protein, a key player in T- and B-cell signaling. The partnership, which includes up to $2.1 billion in milestones, will focus on immune indications.

Pfizer and Takeda are likewise investing heavily in molecular glues, pumping up to $2.55 billion and $1.2 billion into their respective partnerships with Proxygen and Degron Therapeutics.

https://www.biospace.com/business/lilly-hops-on-hot-molecular-glue-train-with-1-6b-magnet-deal