Nektar Gets $90 Million Jury Award in Breach Suit Against Eli Lilly — Update

By Colin Kellaher

Nektar Therapeutics said it has won a $90 million verdict in its lawsuit against Eli Lilly related to the development of its proposed autoimmune drug rezpegaldesleukin, or rezpeg.

Nektar on Friday said a California jury found that Eli Lilly breached the implied covenant of good faith and fair dealing in a 2017 licensing agreement and awarded the San Francisco clinical-stage biotechnology company $90 million in damages, plus interest to be determined by the court.

An Eli Lilly spokesman said the Indianapolis drugmaker will seek a reversal of the verdict.

Nektar and Eli Lilly in 2017 agreed to work together to develop rezpeg for various autoimmune diseases.

Nektar filed suit in 2023 alleging Eli Lilly undermined rezpeg's prospects after it shelled out more than $1 billion in 2020 to buy Dermira, which was developing its own autoimmune drug, lebrikizumab.

Eli Lilly won Food and Drug Administration approval for lebrikizumab, marketed as Ebglyss, in 2024.

Nektar, which was seeking around $1 billion in damages, said the jury's verdict remains subject to post-trial proceedings, and that any resulting judgment may be subject to appeal.

The Eli Lilly spokesman said the jury confirmed that Eli Lilly used commercially reasonable efforts to develop rezpeg and awarded a small fraction of the damages Nektar sought based on a secondary claim.

"We believe that the correct amount is zero and that there is no liability and no damages should have been awarded," the spokesman said.

Nektar is still developing rezpeg, its lead program, and launched a phase 3 study of the drug in atopic dermatitis in July.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 25, 2026 09:52 ET (13:52 GMT)