A behind-the-scenes feud over a drug development program erupted into public view as Nektar Therapeutics filed a lawsuit accusing Eli Lilly of undermining a project in favor of another deal.
At issue is a partnership that began in 2017 to develop and potentially market a drug, known as Rezpeg, to treat various autoimmune diseases, and in particular, eczema. But the arrangement went awry after Lilly spent about $1.1 billion in 2020 to acquire another company called Dermira, which was developing a competing medication to treat atopic dermatitis, according to the lawsuit.
Consequently, Lilly’s interest in its development project with Nektar “waned dramatically.” Lilly “sloughed” off some of its development work to at least one subcontractor, but allegedly failed to “properly direct, supervise, review or validate the work.” And as a result, Lilly “botched” the analysis of early clinical trial data in which Rezpeg was tested as a treatment for eczema and psoriasis.
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