Drug discovery company Nimbus Therapeutics LLC on Tuesday announced a multi-year research collaboration and exclusive worldwide license agreement with pharmaceutical company Eli Lilly and Company (NYSE:LLY) to develop a novel oral treatment for obesity and other metabolic diseases.

This collaboration builds on a prior partnership between the two companies focused on AMPK-targeted research in cardiometabolic disease. Nimbus will apply its AI-driven computational chemistry and structure-based drug design capabilities to an early-stage small molecule programme addressing obesity.

Under the agreement, Nimbus is eligible to receive USD55m in upfront and near-term milestone payments. Total potential value of the collaboration could reach approximately USD1.3bn, including development, commercial, and sales milestones, along with tiered royalties on global net sales.