Pharma BD Deal Intelligence

Eli Lilly and Company / Versanis Bio

2023 · Acquisition/Merger · $1.9B · Complete

Lilly's $1.93B Versanis buy landed exactly as designed: bimagrumab paired with tirzepatide drove ~17.8 kg weight loss versus ~14.2 kg for semaglutide alone while preserving lean mass, though Lilly has already cut one combo trial for "strategic business reasons."

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The coverage arc

Jun 27, 2004 Wikipedia Neutral

Lilly acquired Versanis Bio for $1.93B.

Jun 20, 2025 Eli Lilly Bullish

Lilly ADA 2025 presentations incl. BELIEVE Phase 2 bimagrumab +/- semaglutide data.

Sep 25, 2025 BioPharma Dive Neutral

Lilly terminated bimagrumab+tirzepatide T2D obesity trial (NCT06901349) on 2025-09-25 for strategic business reasons; obesity-only combo trial continues,…

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Eli Lilly (NYSE: LLY) acquired clinical-stage cardiometabolic biotech Versanis Bio in a deal announced July 14, 2023 and completed August 14, 2023, with total consideration of up to $1.93 billion including upfront, development and sales milestones. The asset was bimagrumab (LY3985863), a monoclonal antibody that blocks activin type II receptors to reduce fat mass while preserving or building lean (muscle) mass — a profile intended to complement Lilly's incretin franchise (tirzepatide / Zepbound), where rapid weight loss can erode muscle. Since close, the thesis has been clinically validated: the BELIEVE Phase 2 trial (NCT05616013) of bimagrumab alone and combined with semaglutide, presented at the June 2025 ADA Scientific Sessions and published in Nature Medicine, showed the combination drove up to ~17.8 kg weight loss versus ~14.2 kg for semaglutide alone while preserving lean mass and reducing visceral fat. Lilly has since prioritized bimagrumab + its own tirzepatide: it terminated a bimagrumab+tirzepatide trial in obesity with type 2 diabetes (NCT06901349) on September 25, 2025 for stated 'strategic business reasons' (not safety or efficacy), while the obesity-only bimagrumab+tirzepatide Phase 2 (NCT06643728) continues, with an initial readout expected around April 2026.

Key facts

Disease & market context

Obesity / Cardiometabolic Disease

$53.5B Global GLP-1 Market (2024) · >80% Obese Adults Not Receiving Pharmacotherapy

Disease Overview

Obesity affects over 42% of American adults and is a major driver of type 2 diabetes, cardiovascular disease, and metabolic syndrome. Current GLP-1 therapies achieve significant weight loss but also reduce muscle mass alongside fat. Bimagrumab addresses this limitation by targeting activin receptors to preserve lean muscle mass while reducing fat, potentially improving metabolic outcomes beyond weight loss alone.

Clinical Strategy

Bimagrumab blocks activin type II receptors (ActRIIA/B) to inhibit activin and myostatin signaling, preserving muscle mass during weight loss. The BELIEVE Phase 2b study evaluates bimagrumab alone and in combination with semaglutide in overweight/obese adults. The muscle-sparing mechanism complements GLP-1 agonists, addressing a key limitation of current obesity treatments.

Obesity (GLP-1 Combination)

Competitive Landscape

Bimagrumab + tirzepatide is Lilly's muscle-preserving combination thesis, pairing an anti-ActRII monoclonal antibody with a GLP-1/GIP dual agonist to address fat-specific weight loss while sparing lean mass. The competitive landscape groups by MOA class: incretin monotherapies (dominant), incretin combinations, myostatin/activin pathway agents, and amylin/triple agonists. In the incretin monotherapy class, Lilly's Zepbound (tirzepatide, GLP-1/GIP, approved 2023 for obesity, generating roughly $4.9B 2024 sales) and Novo Nordisk's Wegovy (semaglutide 2.4mg, approved 2021, approximately $8.4B 2024 sales) anchor the market; liraglutide (Saxenda, Novo) is legacy. In the GLP-1 combination/triple-agonist class, Lilly's retatrutide (GLP-1/GIP/glucagon triple, Phase 3 TRIUMPH) and Novo's CagriSema (cagrilintide + semaglutide, Phase 3 REDEFINE) are the most advanced next-wave programs, with retatrutide achieving 24% weight loss at 48 weeks. Amgen's MariTide (maridebart cafraglutide, GLP-1 agonist + GIPR antagonist ADC) is in Phase 3. In the muscle-preservation/activin class, bimagrumab itself (Versanis, now Lilly) is the most advanced anti-ActRII, with Scholar Rock's apitegromab (anti-myostatin) and Regeneron's trevogrumab (anti-myostatin) in combination-with-semaglutide Phase 2. Commercial takeaway: Lilly is internalizing the muscle-preservation axis to protect Zepbound from body composition counter-positioning by Novo and Regeneron.

Deal timeline

Related deals — scored

DealYearValueOutcome
Eli Lilly and Company / Versanis Bio (this deal)2023$1.9B63
Eli Lilly and Company / Boehringer Ingelheim GmbH2011$444M89
Eli Lilly and Company / Loxo Oncology, Inc.2019$8.0B88
Eli Lilly and Company / Applied Molecular Evolution Inc.2003$400M88
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Eli Lilly and Company / Novartis Animal Health2014$5.4B70
Eli Lilly and Company / Incyte Corporation2009$755M69

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