Eli Lilly to invest £279 million in UK biotech hub and obesity research

Eli Lilly partners with the UK government to establish Europe’s first 'Lilly Gateway Labs' that will support early-stage life sciences businesses working on new medicine

American pharmaceutical company Eli Lilly has unveiled plans to invest £279 million in the UK as part of a collaborative partnership with the government to address serious public health challenges, including obesity.

The investment was announced at the government's International Investment Summit in London on Monday, 14 October.

This partnership will establish a UK-based biotech hub, provisionally named Lilly Gateway Labs (LGL), aimed at supporting early-stage life sciences businesses focused on developing new medicines.

The facility will offer start-ups access to laboratory space, mentorship, and potential funding to accelerate growth in the life sciences sector. This would be the first LGL site in Europe, with a second UK site being considered in the coming years.

Lilly already has LGLs in four locations in the United States.

David A Ricks, chair and CEO of Eli Lilly & Company, highlighted the significance of this initiative, stating: “We welcome this opportunity to partner with the UK government on tackling and preventing disease and accelerating innovation to advance care delivery models.

“Today’s announcement is an important milestone, and we are pleased to reinforce Lilly’s commitment to improving health for people living with obesity and its serious consequences.”

The UK government emphasised that this collaboration is aimed at exploring new strategies for treating obesity, which currently costs the NHS around £11 billion annually.

It seeks to merge advances from the life sciences sector with the health system, aiming for improved long-term outcomes for those living with obesity.

Health and social care secretary Wes Streeting emphasised the potential of the collaboration, saying: "For all the challenges facing the health of our nation, we have two huge advantages: some of the world’s leading scientific minds, and a National Health Service with enormous potential. If we can combine the two, patients in this country can reap the rewards of the revolution in medical science unfolding before our eyes."

He added that partnerships like this are “key to building a healthier society, healthier economy, and making the NHS fit for the future."

Science and technology secretary Peter Kyle also praised the initiative, describing it as “proof that this sector is held in high esteem internationally and is driving investment in the UK.”

Life sciences is one of eight key sectors highlighted in the government's new Industrial Strategy Green Paper, aimed at driving economic growth.

According to a Lilly statement, the collaboration will also explore innovative approaches to health and care delivery, including digital support tools, expanded clinical trials in the UK, and potential investments in manufacturing sites or partnerships with UK venture capital funds and academic institutions.

On the clinical trials front, Lilly plans to launch a five-year real-world evidence study, SURMOUNT-REAL UK, in collaboration with Health Innovation Manchester.

This study, subject to approvals, will investigate the effectiveness of tirzepatide, a dual GIP/GLP-1 receptor agonist in the company’s Mounjaro drug, for weight loss, diabetes prevention, and prevention of obesity-related complications for adults with obesity.