Eli Lilly signs another obesity deal with Swiss partner

After a seven-year hiatus, Eli Lilly is rekindling its collaborative efforts with KeyBioscience, a dynamic Swiss biotech firm, to advance the development of dual amylin calcitonin receptor agonists (DACRAs) for obesity and other conditions. As the globe’s largest pharmaceutical company by market capitalization, Eli Lilly has committed up to $1.4 billion for the continuation of their partnership with KeyBioscience to push forward this promising class of treatments. Specific financial details of the upfront payment have not been disclosed by either company.

This renewed partnership includes a particular asset expected to commence Phase 2 clinical trials by the end of this year, targeting individuals with obesity and osteoarthritis. According to a statement released on Thursday morning, KeyBioscience will oversee the trial, which aims to enroll 600 participants and measure both reductions in body weight and changes in osteoarthritis pain.

Already a leading player in the obesity medication market, Eli Lilly is continuing to diversify its research by exploring various mechanisms and areas. The company has formed several alliances focusing on novel insights, including studies involving the “dark genome,” the hibernation patterns of the 13-lined squirrel, and other unconventional areas. Beyond its flagship tirzepatide franchise, Eli Lilly has a robust obesity pipeline, with at least five experimental drugs in late-stage or Phase 2 trials. If KeyBioscience adheres to its projected timelines, Eli Lilly’s obesity pipeline could expand to include six drugs in mid- or late-stage trials by the end of 2024.

KeyBioscience's scientists believe that these dual agonists have the potential to reduce body weight, regulate glucose levels, and enhance insulin action. Eli Lilly already has an amylin receptor agonist, eloralintide, in Phase 2 trials for obesity. KeyBioscience, based in Lugano, Switzerland, is a subsidiary of Danish drug developer Nordic Bioscience. The two companies initially partnered in 2017 with Lilly providing $55 million upfront. The original agreement involved DACRAs such as KBP-042, KBP-089, and KBP-056.

In late 2018, Eli Lilly removed a Phase 2 study of KBP-042/DACRA-042 for type 2 diabetes from its pipeline. Additionally, a study of KBP-089 for type 2 diabetes was terminated in 2020. In December 2019, KeyBioscience reevaluated its approach, leading to the abandonment of daily injectable DACRAs in favor of developing long-acting formulations that could be administered weekly.

This strategic pivot resulted in the creation of KBP-336, which began human trials in the fall of 2021. A Phase 1b trial was completed in the spring of 2023. However, it remains unclear if KBP-336 is the asset that will enter Phase 2 trials as mentioned in Thursday’s press release.

KeyBioscience's decision to shift its focus to long-acting formulations represents a significant milestone in their ongoing research and development efforts. Looking ahead, the partnership between Eli Lilly and KeyBioscience promises to bring innovative solutions to the forefront of obesity and diabetes treatment, potentially offering new hope to millions of patients worldwide.