Nektar Therapeutics, a biotech company developing atopic dermatitis drugs, has filed a lawsuit against former partner Eli Lilly. Nektar alleges that Lilly miscalculated clinical data for their jointly developed drug, rezpegaldesleukin (rezpeg), leading to its perceived failure and subsequent discontinuation. The complaint was lodged in the federal court for the Northern District of California. Nektar accuses Lilly of taking deliberate actions to favor a different atopic dermatitis drug that the pharmaceutical giant added to its portfolio through a $1.1 billion acquisition. Read more.
Rezpeg, a potential solution for a range of autoimmune diseases, was originally developed by Nektar, with Eli Lilly leading the development later on. The partnership came to an abrupt end when the clinical trial results were deemed disappointing, leading to the drug’s rights reverting to Nektar. Also at contention is the accusation that Lilly erroneously calculated clinical data, scuppering rezpeg’s development.
The complaint also includes allegations that Lilly’s interest in rezpeg drastically diminished after they acquired Dermira in a $1.1 billion deal. Nektar claims that Lilly, through neglectful oversight, facilitated botched trial data administration. This, Nektar argues, resulted in an underestimation of rezpeg’s clinical efficacy.
Regardless of the ongoing litigation, Nektar plans to press forward with rezpeg’s development and carry out its own analysis of previous clinical data. With the assistance of an independent statistical firm, Nektar aims to begin a Phase 2b study in October. Details of the trial design will be discussed in an investor meeting in the coming weeks.
Nektar is seeking compensatory and punitive damages alongside a reimbursement of all costs associated with the lawsuit. The case is Nektar Therapeutics v. Eli Lilly & Co., case no. 3:23-cv-03943-JCS.