Lilly, METiS ink AI-driven drug delivery deal (LLY:NYSE)

Daniel Morgenstern, a staff physician at The Hospital for Sick Children, highlighted the success of selpercatinib, a RET inhibitor developed by Loxo Oncology (acquired by Eli Lilly), in treating rare pediatric cancers. The drug showed impressive response and disease control rates in a pediatric phase I/II study published in the Journal of Clinical Oncology. Morgenstern emphasized the need for similar targeted treatments for other pediatric cancers.

METiS and Lilly have partnered to develop next-generation lipid nanoparticle (LNP) delivery solutions. METiS will receive an upfront payment in the low double-digit millions and up to $1.1 billion in milestone payments, plus royalties. The collaboration leverages METiS' AI-driven AiLNP platform for lipid discovery and Lilly's drug development expertise.

METiS TechBio (HKEX:7666) may earn up to $1.1B from Eli Lilly (NYSE:LLY) for developing AI-driven lipid nanoparticles to improve drug delivery. The partnership aims to enhance tissue specificity and therapeutic performance. Lilly continues expanding AI investments, including a deal with Insilico Medicine (HKEX:3696) and deploying NVIDIA's (NASDAQ:NVDA) AI infrastructure.

Eli Lilly's Phase 2 trial of eloralintide combined with tirzepatide showed greater average weight loss (23.3%) than tirzepatide alone (14.8%) in obesity and Type 2 diabetes patients. The combo also reduced blood sugar levels. Lilly plans Phase 3 testing, aiming to balance efficacy and tolerability.

Eli Lilly's mirikizumab showed promising results in a phase 3 study for pediatric ulcerative colitis, with 41% achieving clinical remission at week 12, exceeding placebo rates in adults. The study met its primary endpoint of 50% clinical remission at week 52, comparable to adult results. Mirikizumab demonstrated safety and efficacy, with improvements in endoscopic and symptomatic remission. According to researchers, these findings suggest a potential new advanced therapy for pediatric UC.

Eli Lilly (LLY) shares rose 4.36% to $1,294.36 on October 20. The gain followed a collaboration with METiS, which includes a $1.1 billion milestone potential. The upfront payment is undisclosed but in the low double-digit millions. Most payments depend on future progress. Lilly's stock is 18.12% below the GF Value estimate of $1,580.