Gate Bioscience has expanded its collaboration and license agreement with Eli Lilly to develop small molecule medicines targeting proteins that are difficult to address with existing drug approaches. The expansion adds one target to the companies’ existing work, with an option to add a second.
The multiyear agreement builds on a collaboration established in 2025. Its total potential value could exceed $870 million, contingent on the achievement of milestones.
Gate will receive an upfront payment, research funding and an additional payment if a second target is selected. It is also eligible for payments tied to preclinical, clinical and commercial milestones, along with tiered royalties on global net sales.
Lilly will receive an exclusive worldwide license to research, develop and commercialize products arising from the collaboration for the selected targets.
Gate will lead discovery work using its Molecular Gate platform. Lilly will handle later-stage preclinical development, clinical development, manufacturing and commercialization.
The collaboration focuses on molecular gates, which Gate describes as orally available small molecule drugs designed to eliminate specific proteins by blocking their passage through Sec61, a channel involved in protein secretion. Blocking that passage leads to degradation of the targeted protein, according to the company.
Gate said its approach could address approximately 4,000 protein targets across immunology, neuroscience, cardiometabolic conditions and other diseases. Some currently lack therapies or require injectable medicines to eliminate the target protein.
The Brisbane, California-based company will also continue advancing its wholly owned portfolio toward clinical development alongside the expanded Lilly collaboration, according to the release.
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