Eli Lilly, the leading pharmaceutical company globally, is enhancing its obesity drug pipeline through the acquisition of Versanis Bio, a privately held biotech firm. The deal entails the purchase of Versanis, which is currently testing an innovative monoclonal antibody drug called bimagrumab as a potential treatment for obesity.
Versanis is in the midst of conducting a Phase 2b trial of bimagrumab in overweight and obese adults, both as a standalone treatment and in conjunction with Novo Nordisk’s obesity drug, Wegovy. Although the specifics of the transaction were not disclosed, Lilly revealed that Versanis shareholders have the potential to receive up to $1.925 billion. This amount encompasses an upfront payment as well as future payments linked to development and sales milestones.
With a robust presence in the field of obesity and diabetes treatments, both Lilly and its competitor Novo are at the forefront of pioneering medical solutions. One of Lilly’s latest breakthroughs includes tirzepatide, marketed as Mounjaro for diabetes treatment, which achieved striking results in a large-scale trial, enabling patients to lose over 20% of their body weight. Additionally, patients participating in an earlier-stage trial of Lilly’s retatritude experienced a weight loss of nearly 25%.
The success of Lilly’s obesity drugs has attracted significant investor interest, driving its stock to climb an impressive 157.5% since the beginning of 2021. In stark contrast, the S&P 500 has only seen a modest increase of 20.1% during the same period.
As a testament to investor confidence, Lilly’s shares gained 3.4% during Friday morning’s trading session. The acquisition of Versanis Bio further solidifies Lilly’s position as a leader in combating obesity and underscores their commitment to providing innovative solutions for patients in need.
Bimagrumab: A Unique Approach to Weight Loss
Introduction
In the world of weight-loss medications, names like Mounjaro and retatritude have become synonymous with incretin mimetics. However, there is a new player in town – bimagrumab developed by Versanis. What sets bimagrumab apart is its distinctive mechanism of action which does not involve targeting GLP-1 hormone. Instead, it focuses on activin type II receptors found in fat and muscle cells. By doing so, bimagrumab aims to both increase muscle mass and promote the metabolism of fat.
A Potential Combination Therapy
Lilly, the pharmaceutical giant, recognizes the potential benefits of combining bimagrumab with their existing incretins. In a statement, Ruth Gimeno, Lilly’s group vice president for diabetes, obesity, and cardiometabolic research, expressed the company’s intention to explore the advantages of such combinations for patients. This highlights Lilly’s commitment to offering innovative treatment options.
Expanding the Portfolio
This recent development is not the only endeavor Lilly has undertaken this summer. The company has made two other significant acquisitions. One involves Sigilon Therapeutics, a biotech firm specializing in Type 1 diabetes treatment. The other acquisition is of DICE Therapeutics, focused on chronic immunology diseases. These strategic acquisitions demonstrate Lilly’s dedication to expanding its portfolio and addressing diverse medical needs.
A Journey Through Time
Bimagrumab’s story dates back several years. Initially tested by Novartis as a potential treatment for sporadic inclusion body myositis, a muscle disorder, the drug showed promise but ultimately failed in a late-stage trial in 2016. However, an interesting side effect emerged – significant weight loss. Novartis recognized this potential and licensed the drug to Versanis in 2021. The goal now is to develop bimagrumab as a safe and effective treatment for obesity. Versanis has secured funding from reputable sources such as Aditum Bio, Atlas Venture, and Medicxi.
In conclusion, bimagrumab’s unique approach to weight loss shows great promise. As Lilly aims to combine bimagrumab with existing incretins, there is hope for a more comprehensive and effective treatment for patients struggling with obesity. With exciting acquisitions and dedicated research, Lilly continues to push boundaries in the field of healthcare.
