Gate Bioscience secured an $856 million collaboration and licensing agreement with Lilly, counseled by legal firm WilmerHale.
In a groundbreaking collaboration, California-based biotech firm Gate Bioscience has teamed up with pharmaceutical giant Eli Lilly and Company to discover, develop, and commercialize a new class of small-molecule drugs known as "molecular gates." These innovative drugs are designed to selectively eliminate harmful extracellular proteins responsible for diseases with high unmet medical needs.
The partnership, which carries a potential total deal value of up to $856 million, aims to leverage Gate's proprietary drug discovery engine to identify molecular gates capable of blocking and degrading difficult-to-drug secreted or membrane proteins at their source. This collaboration could open new treatment possibilities for inflammatory diseases, neurodegenerative disorders, and various cancers.
The agreement includes an undisclosed upfront payment to Gate Bioscience, an equity investment by Eli Lilly, milestone payments upon achieving certain development, regulatory, and commercial milestones, and tiered royalties on global net sales of resulting products. Gate will also receive collaborative R&D support from Lilly ExploR&D, part of Lilly’s Catalyze360 program, which focuses on early-stage biotech collaborations.
Legal representation for Gate in this collaboration was provided by WilmerHale, with Jekkie Kim serving as the lead Partner. WilmerHale's services included tax, FDA regulatory, and HSR advice for Gate. Carla Gilbertson advised on HSR matters, while Fred Adam provided tax advice, and Bruce Manheim offered FDA regulatory guidance. Multiple other lawyers from WilmerHale, including Mat Trachok and Helen Park, were also involved in the legal representation for Gate.
This collaboration offers a novel mechanism of action for treating diseases with high unmet medical need, as it targets the development of molecular gates, a new class of small-molecule drugs. The goal is to identify compounds capable of eliminating specific, difficult-to-drug proteins. By doing so, the partnership hopes to pave the way for significant advancements in the treatment of various diseases with currently limited therapeutic options.
Sources: - HealthcareMEA (2025-07-27) - MarketScreener (2025-07-24) - Business Wire (2025-07-24) - The Pharma Letter (2025-07-24) - WilmerHale report (2025-07-28)
Science and health-and-wellness are intertwined in this collaboration, as California-based Gate Bioscience teams up with Eli Lilly and Company to develop a new class of small-molecule drugs known as "molecular gates." These drugs, designed to target specific proteins responsible for various diseases, hold promise for finance and business by potentially opening new treatment possibilities for inflammatory diseases, neurodegenerative disorders, and cancers.
