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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."
Lilly acquired Versanis Bio for $1.93B.
Lilly ADA 2025 presentations incl. BELIEVE Phase 2 bimagrumab +/- semaglutide data.
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.
$53.5B Global GLP-1 Market (2024) · >80% Obese Adults Not Receiving Pharmacotherapy
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.
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.
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.
Eli Lilly completed $1.93B acquisition of Versanis Bio, gaining bimagrumab, activin receptor antibody for obesity and metabolic disease.
Bimagrumab showed body composition improvements: reducing fat while preserving lean mass, differentiated vs GLP-1 agonists that cause muscle loss.
BELIEVE (NCT05616013) data presented at ADA 2025 and published in Nature Medicine: bimagrumab + semaglutide drove up to ~17.8 kg weight loss vs ~14.2 kg semaglutide alone, preserving lean mass and reducing visceral fat.
Lilly terminated the bimagrumab+tirzepatide trial in obesity with type 2 diabetes (NCT06901349) for 'strategic business reasons' (not safety/efficacy). The obesity-only bimagrumab+tirzepatide Phase 2 (NCT06643728) continues, with initial results expected ~April 2026.
Bimagrumab complements Lilly's tirzepatide franchise by preserving muscle during weight loss. Potential combo therapy. Strong strategic fit.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Eli Lilly and Company / Versanis Bio (this deal) | 2023 | $1.9B | 63 |
| Eli Lilly and Company / Boehringer Ingelheim GmbH | 2011 | $444M | 89 |
| Eli Lilly and Company / Loxo Oncology, Inc. | 2019 | $8.0B | 88 |
| Eli Lilly and Company / Applied Molecular Evolution Inc. | 2003 | $400M | 88 |
| Eli Lilly and Company / ICOS Corporation | 2006 | $2.3B | 87 |
| Eli Lilly and Company / Novartis Animal Health | 2014 | $5.4B | 70 |
| Eli Lilly and Company / Incyte Corporation | 2009 | $755M | 69 |
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