Gate Bioscience Partnered with Lilly on a $856M Collaborative and Licensing Deal, Counseled by WilmerHale
In a groundbreaking collaboration announced on July 24, 2025, Gate Bioscience, a renowned biotechnology company, joined forces with Eli Lilly and Company to develop a new class of small molecule drugs called molecular gates. These therapeutics are designed to eliminate disease-causing proteins at their source by blocking their secretion from cells.
The collaboration aims to target difficult-to-drug proteins related to diseases with high unmet medical needs. The deal leverages Gate’s molecular gate drug discovery engine combined with Lilly’s expertise in small molecule therapeutics.
Under the terms of the agreement, Gate Bioscience stands to receive an upfront payment, equity investment, and milestone payments, with a potential total deal value of approximately $856 million. In addition, Gate will receive tiered royalties on global net sales.
To ensure a smooth transaction, the legal team at WilmerHale provided extensive advice for various aspects of the deal. The corporate deal team at WilmerHale was led by Partner Jekkie Kim, Counsel Mat Trachok, and Associate Helen Park. Partner Fred Adam offered advice on tax matters, while HSR matters were handled by Partner Carla Gilbertson.
Moreover, Gate may obtain certain preclinical R&D support from Lilly ExploR&D, part of Lilly Catalyze360, to support internal programs. Bruce Manheim, a Partner at WilmerHale, offered advice on FDA regulatory matters.
The collaboration between Gate Bioscience and Eli Lilly and Company marks an exciting step forward in the development of novel therapeutics for diseases with significant unmet medical needs. With the combined expertise of both companies, the collaboration is poised to make significant advancements in the field.
[1] Source: Gate Bioscience Press Release [2] Source: Eli Lilly and Company Press Release [3] Source: WilmerHale Press Release [4] Source: Lilly Catalyze360 Press Release
- This collaboration between Gate Bioscience and Eli Lilly and Company, focusing on developing small molecule drugs for medical-conditions with high unmet needs, is a significant milestone in the science of health-and-wellness, aiming to eliminate disease-causing proteins at their source.
- As the collaboration progresses, it may leverage Gate's molecular gate drug discovery engine, Lilly's expertise in small molecule therapeutics, and preclinical R&D support from Lilly ExploR&D, potentially leading to groundbreaking advancements in science and medical-conditions treatment.
