Bullish options flow was detected in LLY stock on January 9, 2020, after the company revealed a strategic collaboration with Strateos.

Eli Lilly and Company (NYSE: LLY) and Strateos, Inc. today unveiled a new robotic laboratory in San Diego, California designed to accelerate the drug discovery process. The Lilly Life Sciences Studio lab was conceptualized and designed by Lilly as part of a $90 million investment made in 2017 to expand Lilly’s research footprint in San Diego. Strateos will utilize their robotic cloud platform to enable the access of this remote-controlled lab to other drug discovery companies and research scientists through its secure cloud-based platform as part of the collaboration.

The studio lab physically and virtually integrates several areas of the drug discovery process together—including design, synthesis, purification, analysis, sample management, and hypothesis testing—into a fully automated platform. The studio lab will be operated on the Strateos (formerly Transcriptic) technology platform which enables research scientists to remotely control their experiments via a web-based interface. The integrated system gives scientists the benefit of running and refining experiments in real-time with a high degree of reproducibility.

“Lilly is committed to finding new ways to accelerate the drug discovery process and this collaboration with Strateos further enables this mission,” said Bill Health, senior vice president of Lilly’s Molecule Innovation Hub. “Through the studio lab, emerging drug discovery companies can gain access to a variety of tools and throughput usually reserved for much larger organizations. Lilly and Strateos are excited to expand access of this technology to others in the scientific community.”

The 11,500 square foot lab is located within the Lilly Biotechnology Center in San Diego and will be operated by Strateos. Technology partners include: Hamilton, The Morse Group, Zinsser, Chemspeed, Hamilton Storage, Labcyte, Biosero, Tek-Matic, Accelerated Machine Design and Engineering, and Virscidian. The studio lab currently includes more than 100 instruments and storage for over 5 million compounds, all within a closed-loop and automated drug discovery platform. Drug discovery teams will be able to synthesize, test, and optimize compounds remotely for lead generation in biological and medicinal chemistry experiments in a closed-loop and integrated manner via the Strateos Robotic Cloud Lab platform.

“Lilly and Strateos have long histories of leadership in lab automation and we are pleased to combine our collective expertise to expanded access to this facility via the Strateos Robotic Cloud Lab platform. This laboratory represents the next evolution in drug discovery as we close the loop of synthesis and testing,” said Mark Fischer-Colbrie, CEO at Strateos. “Through this collaboration, we are building on our current on-demand biology capabilities and integrating automated chemical synthesis to enable a complete, rapid design-make-test-analyze cycle. This partnership furthers our mission to combine innovation, integration, and industrialization to drive information essential to accelerating discovery.”

On January 8, 2020, Christopher Raymond of Piper Sandler noted that after Eli Lilly competitor Blueprint Medicines (BPMC) disclosed about 7 months of additional data from the P1/2 ARROW study in patients with RET fusion-positive non-small cell lung cancer, or NSCLC, mDOR was not reached and that CNS response data were not provided. With pralsetinib’s durability still not known, he continues to believe Eli Lilly (LLY) “has the edge” in treating later-line NSCLC patients with selpercatinib.

On December 30, 2019, Eli Lilly and Company (NYSE: LLY) announced that the U.S. District Court for the Southern District of Indiana ruled in favor of Lilly that the Alimta® (pemetrexed for injection) vitamin regimen patent would be infringed by a competitor that had stated its intent to market alternative salt forms of pemetrexed prior to the patent’s expiration in May 2022.

The ruling came in the case of Eli Lilly and Company v. Apotex Inc.

“We are pleased with today’s District Court ruling finding the Alimta vitamin regimen patent would be infringed by the competitor’s proposed products,” said Michael J. Harrington, Lilly’s senior vice president and general counsel. “Lilly’s extensive research to discover the Alimta vitamin regimen patent deserves intellectual property protection. We depend on strong and effective intellectual property protection to support our investment in the next generation of breakthrough medicines.”

On August 9, 2019, the U.S. Court of Appeals for the Federal Circuit Court ruled in favor of Lilly in appeals by Dr. Reddy’s Laboratories, Ltd. and. Hospira, Inc., affirming the June 2018 district court’s decisions finding infringement of Lilly’s patent under the doctrine of equivalents.

Today’s ruling means Apotex will be prevented from launching its alternative salt form of pemetrexed until the patent expires. Lilly expects Apotex to appeal.

In October 2017, the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office ruled in the company’s favor regarding patentability of the vitamin regimen for Alimta.

In March 2014, the U.S. Court for the Southern District of Indiana upheld the validity of the vitamin regimen patent. In August 2015, the same court ruled in Lilly’s favor regarding infringement of the vitamin regimen patent. The U.S. Court of Appeals for the Federal Circuit confirmed these rulings in a unanimous decision in January 2017, finding the patent is valid and would be infringed by the generic challengers’ proposed products.

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