Mediar Strikes $99 Million Deal with Lilly for IPF Drug Development

Boston-area startup Mediar Therapeutics has partnered with pharmaceutical giant Eli Lilly to develop a new treatment for idiopathic pulmonary fibrosis (IPF), a serious lung-scarring condition. Eli Lilly has agreed to pay $99 million upfront and in near-term milestones, with the potential of up to $687 million more depending on development and commercialization success of Mediar's experimental drug MTX-463, which neutralizes the fibrotic signaling pathway WISP-1. Mediar plans to initiate Phase 2 trials in the first half of the year in about 15 countries. This partnership follows a competitive process that began around last year's JP Morgan Healthcare Conference. The funding from Lilly will assist in trial developments and push another in-house candidate, MTX-474, into Phase 2 trials focusing on systemic sclerosis. Additionally, Mediar is working on a third program targeting SMOC2. IPF, a condition with limited treatment options currently dominated by Roche's Esbriet and Boehringer Ingelheim's Ofev, presents a new focus area for Lilly. Despite previous setbacks in the field, Lilly is investing significantly, indicating a strategic move to diversify its portfolio.