Magnet Biomedicine, a biopharmaceutical company advancing molecular glue discovery with rational selection and design, has announced a collaboration and license agreement with Eli Lilly to discover, develop, and commercialise molecular glue therapeutics in oncology.
The collaboration will leverage Magnet’s TrueGlue discovery platform, which is designed to identify molecular glues capable of inducing protein proximity and cooperativity.
This mechanism enables the development of novel therapeutic strategies to tackle difficult-to-drug targets across multiple diseases with significant unmet medical needs.
Under the terms of the agreement, Magnet will receive upfront and near-term payments, along with an equity investment of up to $40m.
Additionally, Magnet is eligible for over $1.25bn in milestone payments contingent upon the achievement of specific development, regulatory, and commercial milestones. The agreement also includes tiered royalties on global net sales of the resulting therapeutics.
Magnet’s TrueGlue discovery platform employs advanced screening technologies, proprietary chemical libraries, and strategic selection of target and presenter proteins to systematically identify TrueGlues.
These small molecules induce proximity and promote cooperativity between proteins, allowing for precise drug targeting to disease-relevant tissues and addressing historically difficult-to-drug proteins.
Magnet CEO Brian Safina said: “This collaboration supports our differentiated approach and efforts to reimagine what’s achievable through the next generation of molecular glues to drive breakthrough therapies.
“Lilly’s commitment to innovation and deep expertise in bringing transformative medicines to patients make it an ideal partner for Magnet as we harness the untapped potential of molecular glues.”
In a related development, Eli Lilly plans to invest $27bn in constructing four new pharmaceutical manufacturing plants in the US to enhance domestic drug production. The initiative will increase the company’s total US capital expansion commitments to over $50bn since 2020.
The investment comes as the drugmaker anticipates potential drug import duties from the Trump administration.
Three of the new US sites will focus on producing active pharmaceutical ingredients (API), reinstating small molecule chemical synthesis capabilities and improving Lilly’s supply chain.
The fourth site will expand the company’s global parenteral manufacturing network for future injectable therapies.
