{"id":2599,"date":"2026-07-01T12:09:32","date_gmt":"2026-07-01T12:09:32","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=2599"},"modified":"2026-07-01T12:09:32","modified_gmt":"2026-07-01T12:09:32","slug":"eli-lilly-just-placed-a-40-million-bet-on-the-next-injectable-boom","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=2599","title":{"rendered":"Eli Lilly just placed a $40 million bet on the next injectable boom"},"content":{"rendered":"<div>\n<p>The pharma giant behind Zepbound and Mounjaro\u2014which made the injectable culturally normal for millions of Americans\u2014led a $100 million stock offering in Absci, a generative AI drug company. Adage, BVF Partners, Columbia Threadneedle, Invus and Redmile also participated. Absci used AI to design ABS-201, an injectable antibody targeting the prolactin receptor (a hormone receptor connected to both hair growth and reproductive health). The injectable is meant to treat both androgenetic alopecia (commonly known as male or female pattern baldness) and endometriosis. No approved existing injectable antibody treats either one.<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=2597\">Henry Ford, Steve Jobs, William Boeing: These Fortune 500 founders are the American-born children of immigrants<\/a><\/p>\n<p>Last week, Lilly\u2019s deal with Absci closed the same day Absci released positive Phase 1 safety data on ABS-201. Absci CEO Sean McClain told me the $40 million buys Lilly \u201ctickets to the game.\u201d In short, proximity. They share a DTC ambition\u2014Lilly has LillyDirect, and Absci wants to sell biologics almost like a consumer brand. McClain floated the idea of eventually fusing his drug with a GLP-1 compound: one shot for hair regrowth and weight loss. \u201cYou could see in the future where you\u2019ve combined those products,\u201d he told me. \u201cTotal vitality at an affordable price.\u201d<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>That\u2019s the market this deal is actually pointing at. GLP-1s have made injecting yourself unremarkable.\u00a0<\/p>\n<p>The broader injectable market is a $650 billion opportunity in 2026. GLP-1s alone are projected to hit $190\u2013$200 billion by 2030. But oral GLP-1 versions from Lilly and Novo Nordisk are already on shelves, and the convenience argument for shots is getting harder to make\u2014unless the biology demands it. Absci\u2019s CMO Ransi Somaratne\u2019s case for why ABS-201 stays injectable: proteins get destroyed in the stomach, and a pill version would reach the brain in ways a shot doesn\u2019t.<\/p>\n<p>McClain\u2019s bigger argument is about where value actually lives in AI drug discovery\u2014as AI tools become cheaper and more widely available, pharma companies will pay less and less to license them, meaning the only real leverage is owning the drug itself.\u00a0<\/p>\n<p>Absci\u2019s thesis is to use AI-designed drugs plus clinical trials run in China at a fraction of U.S. cost to compress the path from target to Phase 2 proof-of-concept from $150 million to $15\u2013$20 million. \u201cAI, China, and DTC,\u201d he said. \u201cThat is going to change the game in healthcare.\u201d<\/p>\n<div>\n<div><\/div>\n<\/div>\n<p>The money flooding into this space tells its own story. Isomorphic Labs\u2014Alphabet\u2019s AI drug design spinout\u2014raised a $2.1 billion Series B in May. Earendil Labs, a U.S.-China AI biologics startup backed by Sanofi and Pfizer, pulled in $787 million in March. And Xaira Therapeutics launched with $1 billion before it had a single drug in the clinic. Against that backdrop, Absci (the only publicly traded company in the group) has raised over $530 million total and is already in Phase 1.<\/p>\n<p>Whether ABS-201 becomes the first AI-designed antibody to prove it truly works in people is still unknown. But Lilly putting its name (and $40 million) on the cap table means the race just got a very powerful backer.<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>See you tomorrow,<\/p>\n<div>\n<div><\/div>\n<\/div>\n<p> @LilyMaeLazarus<br \/>lily.lazarus@fortune.com<br \/>Submit a deal for the Term Sheet newsletter\u00a0here.<\/p>\n<div>\n<div><\/div>\n<\/div>\n<div>\n<div><\/div>\n<\/div>\n<p><em>Joey Abrams curated the deals section of today\u2019s newsletter.<\/em> Subscribe here.<\/p>\n<h3>VENTURE DEALS<\/h3>\n<p><span>&#8211; <\/span><b>Beeline<\/b> <b>Medicines<\/b><span>, a Boston, Mass.-based clinical-stage biotechnology company focused on precision therapies for autoimmune and inflammatory diseases, raised $126.3 million in a Series A extension from <\/span><b>Bain<\/b> <b>Capital<\/b><span>, <\/span><b>Canada Pension<\/b> <b>Plan<\/b> <b>Investment<\/b> <b>Board<\/b><span>, and others.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Dominion<\/b> <b>Dynamics<\/b><span>, an Ottawa, Canada-based defense technology company building Arctic surveillance networks and autonomous drone systems for national security, raised CAD $139 million ($100 million USD) in Series A funding. <\/span><b>Georgian<\/b><span> led the round and was joined by <\/span><b>Valor Equity Partners<\/b><span>, <\/span><b>Expeditions<\/b><span>, Lakestar, <\/span><b>OMERS<\/b><span>, and others.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Higharc<\/b><span>, a Durham, N.C.-based AI software company designed to help homebuilders design, sell, and manage new homes, raised $95 million in Series C funding. <\/span><b>Insight<\/b> <b>Partners<\/b><span> led the round.<\/span><\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<div>\n<div><\/div>\n<\/div>\n<p><span>&#8211; <\/span><b>Stathera<\/b><span>, a Montreal, Canada-based semiconductor company, raised $55 million in Series B funding. <\/span><b>Maverick<\/b> <b>Capital<\/b><span> led the round and was joined by <\/span><b>Celesta<\/b> <b>Capital<\/b><span>, <\/span><b>BDC<\/b> <b>Capital<\/b><span>, <\/span><b>MediaTek<\/b> <b>Innovation<\/b> <b>Fund<\/b><span>, <\/span><b>TXC<\/b> <b>Corporation<\/b><span>, and <\/span><b>Ultratech Capital<\/b> <b>Partners<\/b><span>.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Queue<\/b><span>, a Palo Alto, Calif.-based developer of a fully-autonomous robotic pharmacy, raised $12.6 million in seed funding. <\/span><b>AlleyCorp<\/b><span> led the round and was joined by <\/span><b>House<\/b> <b>Capital<\/b><span>, <\/span><b>Ubiquity<\/b> <b>Ventures<\/b><span>, <\/span><b>Grep<\/b> <b>Ventures<\/b><span>, and <\/span><b>Banter<\/b> <b>Capital<\/b><span>.<\/span><\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=2595\">One rare bipartisan AI bill is moving through Congress. Here\u2019s why it deserves to pass<\/a><\/p>\n<p><span>&#8211; <\/span><b>MDOTM<\/b><span>, a London, U.K.-based AI-powered portfolio management platform for institutional investors and asset managers, raised $27 million in funding. <\/span><b>Expedition<\/b> <b>Growth<\/b> <b>Capital<\/b><span> led the round.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Pie<\/b><span>, a New York City-based AI-powered growth platform for small businesses, raised $19.5 million in Series A funding. <\/span><b>Lightspeed<\/b> <b>Venture<\/b> <b>Partners<\/b><span> led the round and was joined by Capital One Ventures, <\/span><b>SciFi VC<\/b><span>,<\/span><b> F-Prime<\/b><span>, <\/span><b>Commerce<\/b> <b>Ventures<\/b><span>, <\/span><b>WEX<\/b> <b>Venture<\/b> <b>Capital<\/b><span>, and existing investors.<\/span><\/p>\n<div>\n<div><\/div>\n<\/div>\n<p><span>&#8211; <\/span><b>Build.inc<\/b><span>, a San Francisco-based company designed to improve AI-native infrastructure and developer tools to help teams build, deploy, and scale AI applications, raised $8.5 million in seed funding. <\/span><b>Index<\/b> <b>Ventures<\/b><span> led the round and was joined by <\/span><b>Pebblebed<\/b><span>, <\/span><b>Puzzle Ventures<\/b><span>, and<\/span><b> Tiny.vc<\/b><span>.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Arcturus<\/b><span>, a Los Angeles, Calif.-based advanced materials company developing materials for energy, aerospace, and industrial applications, raised $8 million in seed funding. <\/span><b>Initialized<\/b> <b>Capital<\/b><span> led the round and was joined by <\/span><b>1517<\/b><span>, <\/span><b>Breakthrough<\/b> <b>Energy<\/b> <b>Discovery<\/b><span>, <\/span><b>Toyota<\/b> <b>Ventures<\/b><span>, and <\/span><b>Wireframe<\/b> <b>Ventures<\/b><span>.<\/span><\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p><span>&#8211; <\/span><b>Dawnguard<\/b><span>, an Amsterdam, Netherlands-based cybersecurity company, raised $6.3 million in pre-seed funding. <\/span><b>BNVT<\/b> <b>Capital<\/b><span> led the round and was joined by <\/span><b>Curiosity<\/b> <b>VC<\/b><span> and <\/span><b>eCAPITAL<\/b><span>.<\/span><\/p>\n<p><span>&#8211; <\/span><b>Acti<\/b><span>, a Singapore-based agentic keyboard designed to automate workflows and text generation to help users work faster, raised $5.3 million in funding. <\/span><b>BITKRAFT<\/b> <b>Ventures<\/b><span> led the round.\u00a0<\/span><\/p>\n<div>\n<div><\/div>\n<\/div>\n<h3>PRIVATE EQUITY<\/h3>\n<p><span>&#8211; <\/span><b>Martis<\/b> <b>Capital<\/b><span> acquired a majority stake in <\/span><b>Deerfield<\/b> <b>Group<\/b><span>, a Conshohocken, Pa.-based marketing, communications, and media partner for the healthcare and life sciences sectors. Financial terms were not disclosed.\u00a0<\/span><\/p>\n<p><span>&#8211; <\/span><b>PestCo<\/b> <b>Holdings<\/b><span>, a portfolio company of <\/span><b>Thompson<\/b> <b>Street<\/b> <b>Capital<\/b> <b>Partners<\/b><span>, acquired <\/span><b>Arrow<\/b> <b>Pest Control<\/b><span>, a Morganville, N.J.-based pest control company. Financial terms were not disclosed.<\/span><\/p>\n<p><span>&#8211; <\/span><b>ServiceTrade<\/b><span>, backed by <\/span><b>JMI<\/b> <b>Equity<\/b><span>, acquired <\/span><b>Mura<\/b><span>, a Durham, N.C.-based agentic AI platform that automates field service billing and collections. Financial terms were not disclosed.<\/span><\/p>\n<h3>EXITS<\/h3>\n<p><span>&#8211; <\/span><b>Authentic Brands<\/b> <b>Group<\/b><span> acquired <\/span><b>Care<\/b> <b>Bears<\/b><span>, a Cleveland, Ohio-based family entertainment brand, from <\/span><b>Cloverlay<\/b><span>. Financial terms were not disclosed.<\/span><\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p><span>&#8211; <\/span><b>The<\/b> <b>Visualize Group<\/b><span> agreed to acquire <\/span><b>eCOGRA<\/b><span>, a London, U.K.-based testing, inspection, certification, and compliance services provider for the gaming industry, from <\/span><b>Hanover<\/b> <b>Investors<\/b> <b>Management<\/b><span>. Financial terms were not disclosed.<\/span><\/p>\n<h3>FUNDS + FUNDS OF FUNDS<\/h3>\n<p><span>&#8211; <\/span><b>Tapestry<\/b> <b>VC<\/b><span>, a London, U.K.-based venture capital firm, raised $80 million for its third fund focused on repeat founders.<\/span><\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=2593\">Stripe, Visa and over 140 other businesses to launch stablecoin to rival Tether and Circle<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The GLP-1 maker\u2019s latest AI investment targets drug discovery and the future of consumer medicine.<\/p>\n","protected":false},"author":1,"featured_media":2598,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-2599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-term-sheet"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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