Jury orders Lilly to pay $90M to Nektar over contract dispute

A federal jury ordered Eli Lilly and Company to pay $90 million in damages to Nektar Therapeutics. The verdict follows a contract dispute tied to the development and commercialization of rezpegaldesleukin.

According to an 8-K filing, the jury delivered its decision on Wednesday, September 23, in the U.S. District Court for the Northern District of California. The trial began on September 8 after Nektar filed its complaint in August 2023, alleging breach of contract and breach of the implied covenant of good faith and fair dealing.

The jury found that Lilly breached the implied covenant of good faith and fair dealing under the companies' license agreement. In addition to the $90 million in damages, the court will determine interest.

The verdict remains subject to post-trial proceedings, and any resulting judgment may be subject to appeal. Nektar shares rose 3.6% in premarket trading on Friday following the news.