Jury Awarded Nektar $90 Million in Eli Lilly Suit
A California federal jury found Eli Lilly breached a contract regarding the development of the autoimmune drug Rezpeg.
Updated on Sept. 24, 2026 in Healthcare
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A California federal jury awarded Nektar Therapeutics $90 million following a verdict that Eli Lilly breached the implied covenant of good faith and fair dealing. The dispute centered on a co-development agreement for the autoimmune drug Rezpeg.
Why it matters
This verdict concludes a high-stakes legal battle over the terms and mutual obligations governing the pharmaceutical partnership for Rezpeg. It highlights the potential liabilities for larger companies when courts determine they have not upheld the specific covenants of a development deal.
The jury awarded Nektar Therapeutics $90 million in damages after the company had initially sought $1 billion in the breach of contract lawsuit.
The players
Nektar Therapeutics
Nektar Therapeutics is a biopharmaceutical company focused on discovering and developing medicines in areas like oncology and immunology.
Eli Lilly
Eli Lilly is a global pharmaceutical corporation known for developing medications for conditions including diabetes, cancer, and autoimmune diseases.
The details
The jury determined that Eli Lilly failed to uphold its responsibilities under the agreement established for the co-development of the autoimmune treatment Rezpeg. The ruling specifically addressed the breach of the implied covenant of good faith and fair dealing between the two firms.
Timeline
A California federal jury issued the verdict on September 24, 2026.
Market Landscape
This litigation follows the 2024 Eli Lilly and Nektar Therapeutics partnership dissolution, which effectively ended their joint development efforts on the drug. The result marks a major legal conclusion to a dispute that has significantly impacted the collaborative landscape between these firms.
While the verdict affects the two companies, it generally signals potential shifts in how major pharmaceutical players manage collaborative research and development contracts. Consumers may see indirect impacts depending on how these legal outcomes influence future drug development timelines.
The takeaway
Contractual clarity remains the most critical factor for companies managing complex co-development partnerships. Businesses should prioritize clearly defined milestones to prevent costly legal disputes and potential damage to long-term innovation projects.
Further reading
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Should large pharmaceutical companies be held liable for damages in broken development partnerships?
