Nektar wins $90 million jury award in dispute with Eli Lilly

A federal jury in California awarded Nektar Therapeutics $90 million in damages after finding that Eli Lilly breached the implied covenant of good faith and fair dealing in a 2017 licensing agreement tied to their development of rezpegaldesleukin (rezpeg), an experimental autoimmune-disease drug.

Nektar had sought about $1 billion. Lilly said the jury found it used commercially reasonable efforts to develop the drug, called the award only a small fraction of Nektar’s claim, and said it intends to seek reversal.

The court still has to determine interest. The verdict is subject to post-trial proceedings and may be appealed, so the award is not necessarily final.

The dispute followed the companies’ collaboration on rezpeg. Nektar alleged Lilly undermined the drug’s prospects after acquiring Dermira, which had a competing treatment.