Eli Lilly Bets $500 Million on Ground Squirrels to Unlock Next-Gen Obesity Therapies

Eli Lilly and Company already has multiple obesity candidate drugs in the mid-to-late stages of clinical development, laying the groundwork for the success of its dual-agonist (GIP/GLP-1) obesity treatment drug Zepbound. However, a new collaboration disclosed on Thursday morning (December 21) shows that Eli Lilly's ambitions in this field extend far beyond the next two years.

Eli Lilly and Company, the world's largest pharmaceutical company by market value, has chosen Fauna Bio, Inc., a 17-person startup based in California, as its latest partner. Eli Lilly is investing up to $494 million, hoping that research findings from the six-month hibernation period of the 13-lined ground squirrel each year will provide new targets for treating chronic diseases that affect millions of people.

Eli Lilly and Company and Fauna Bio, Inc. did not disclose the specific details of Thursday's deal, but Ashley Zehnder, CEO of the startup, said: "The agreement includes an upfront payment, equity investment, as well as traditional biotech milestones and royalties, if the jointly developed drug is approved."

Katie Grabek, Chief Scientific Officer of Fauna Bio, studied the hibernation of 13-lined ground squirrels during her Ph.D. research. This research prompted the biotech company to license the establishment of a biobank and set up a satellite research team in Oshkosh, Wisconsin.

Ruth Gimeno, Group Vice President of Diabetes, Obesity, and Cardiometabolic Research at Eli Lilly and Company, said in a statement that Eli Lilly and Company is commissioning Fauna Bio, Inc. to identify multiple drug targets over years of collaboration, with the hope of providing more effective treatments for people with obesity.

Currently, Zehnder says Eli Lilly and Company is open to treatment methods. Zepbound is an injectable drug, but Eli Lilly and other companies are also testing oral medications. Pharmaceutical manufacturers are also exploring other methods, including gene therapy.

By using the squirrel model, Fauna Bio is leveraging a dataset that differs from most other companies in the field. Zehnder said another significant insight from squirrels could be how they regain lean muscle mass as their hibernation cycle nears its end. Current weight-loss treatments are associated with muscle loss, and pharmaceutical companies are looking to pair GLP-1 drugs with others that preserve muscle. This was demonstrated earlier this year when Eli Lilly and Company acquired Versanis Bio for up to $1.9 billion.

In addition to its collaboration with Eli Lilly and Company, Fauna Bio, Inc. is also developing a preclinical internal pipeline, which includes a small molecule drug in the cardiopulmonary field and another project exploring central nervous system and certain ophthalmic indications. Fauna Bio is also studying other animal models, including the spiny mouse, an animal model capable of regenerating tissue without scarring.

Fauna Bio, Inc. has raised approximately $14 million in venture capital funding over the past six years since its establishment. This includes investments from True Ventures, age1, a biotechnology fund focused on aging-related research, and Boom Capital, a pre-seed investor that has provided early-stage funding to companies such as Mammoth Biosciences and A-Alpha Bio.

Source: Biopharmaceutical Era

Editor: Ren Luyun

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