Roundup: Shionogi Inc. Acquires IntraBio, Gate Bioscience extends Collaboration with Eli Lilly, Alector Enters Global License Agreement with Genentech

A phase 3b trial of lebrikizumab (Ebglyss) showed over 50% of patients with moderate-to-severe hand and foot eczema achieved clear or almost clear skin. Significant reductions in itch and pain were reported, with 76.7% of patients satisfied with skin clearance. Lebrikizumab, approved for atopic dermatitis, is developed by Eli Lilly and Almirall in Europe.

Cantor Fitzgerald raised its price target for Eli Lilly (NYSE:LLY) to $1,440, citing strong demand trends and potential tailwinds from new products. The stock trades at $1,189 with a market cap of $1.06 trillion. Analysts note pricing headwinds but highlight a PEG ratio of 0.42 and 49.6% revenue growth. Recent FDA approvals and positive analyst ratings also support the stock.

Eli Lilly began construction on a $6.5bn Houston factory to produce Foundayo, its oral GLP-1 drug for diabetes and obesity. The project will create 4,000 jobs during construction and 600 permanent roles. Foundayo is under regulatory review in over 40 countries, with a global launch planned for 2027. According to Texas Governor Greg Abbott, this is the largest active pharmaceutical ingredient project in Texas history.

PhRMA sued the Trump administration over the 'most-favored-nation' drug pricing rule for Medicare, arguing it is illegal. The rule, finalized last week, uses drug prices in comparable countries to calculate Medicare Part B rebates. CMS estimates $440M in savings over seven years. Pfizer, Eli Lilly, and Novo Nordisk have voluntary pricing deals with the White House.

A federal jury ruled that Eli Lilly & Co. breached the implied covenant of good faith and fair dealing with Nektar Therapeutics, awarding Nektar $90 million in damages. The jury rejected Nektar's claim that Lilly breached the license agreement's commercially reasonable efforts (CRE) obligation. Lilly plans to appeal, arguing no liability should have been imposed. The case highlights risks in biopharma licensing agreements.

Lilly Endowment, Inc. plans to sell 300,000 shares of Eli Lilly and Company (LLY) worth $347.25M via J.P. Morgan Securities, with a proposed sale date of October 7, 2026. The endowment has sold 302,403 shares in the past three months. LLY has 941.36M shares outstanding.