• Collaboration combines Gate Bioscience’s Molecular Gate drug discovery engine with Lilly's expertise in small molecule therapeutics.
• Company to receive an upfront payment, an equity investment, potential milestones, and tiered royalties.

Insert updated third paragraph, first sentence of release:

Under the terms of the agreement, Gate will receive an upfront payment and equity investment and will be eligible to receive milestone payments upon achievement of certain development, regulatory, and commercial milestones, as well as tiered royalties on global net sales, with a total deal value up to $856 million.

The updated release reads:

GATE BIOSCIENCE ENTERS INTO A COLLABORATION AND LICENSE AGREEMENT WITH LILLY TO DISCOVER AND DEVELOP MOLECULAR GATE MEDICINES

• Collaboration combines Gate Bioscience’s Molecular Gate drug discovery engine with Lilly's expertise in small molecule therapeutics.
• Company to receive an upfront payment, an equity investment, potential milestones, and tiered royalties.

Gate Bioscience, a biotechnology company developing molecular gates, a new class of small molecule drugs to eliminate disease-causing proteins at their source, today announced a collaboration and license agreement with Eli Lilly and Company (“Lilly”) to discover, develop, and commercialize molecular gate therapeutics. The collaboration will leverage Gate’s molecular gate drug discovery engine to identify molecular gates capable of eliminating specific difficult-to-drug proteins, bringing forth medicines with a new mechanism of action for diseases of high unmet medical need.

“This collaboration fuels our vision to make molecular gates into medicines,” said Jordi Mata-Fink, Ph.D., co-founder and CEO of Gate. “Our drugs eliminate disease-causing proteins at their source with a convenient pill. Lilly’s expertise in developing innovative therapeutics to address unmet medical needs for the benefit of patients stands apart. Lilly is an ideal partner for Gate as we develop the first wave of molecular gate drugs.”

Under the terms of the agreement, Gate will receive an upfront payment and equity investment and will be eligible to receive milestone payments upon achievement of certain development, regulatory, and commercial milestones, as well as tiered royalties on global net sales, with a total deal value up to $856 million. Gate can also receive certain preclinical R&D support from Lilly ExploR&D, a pillar of Lilly Catalyze360, for their internal programs.

“Lilly has shown its commitment to building the biotech ecosystem through win-win partnerships with innovative start-up companies,” said Vineeta Agarwala, M.D., Ph.D., board member at Gate and general partner at a16z Bio + Health. “With this collaboration, Lilly gains access to a transformative new drug modality and Gate taps into Lilly’s deep expertise in delivering meaningful therapeutics. Ultimately, patients will be the big winners.”

About Gate Bioscience

Gate Bioscience is creating a new class of medicines called molecular gates, small molecules that eliminate a disease-causing secreted or membrane protein at its source. Secreted and membrane proteins pass through a common channel in the cell before they are secreted into the body. Molecular Gates recognize and block a specific protein from crossing the channel, causing it to be degraded by the cell instead of being secreted. By eliminating the harmful protein at its source, Gate aims to eliminate the disease for patients. Founded in 2021, Gate is backed by Versant Ventures, a16z Bio + Health, ARCH Venture Partners, and GV. Learn more at www.gatebio.com.

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