Lilly partners with China's Laekna on a muscle-preserving obesity antibody

Eli Lilly has struck a collaboration deal with Hong Kong-listed biotech Laekna to develop an experimental antibody meant to help people lose weight without losing muscle, the companies announced Wednesday ^[1].

The drug, called LAE102, targets activin receptor type 2A, part of a biological pathway involved in muscle regeneration and in how the body breaks down and stores fat for energy ^[1]. Laekna says lab studies have shown the drug can increase lean mass and decrease fat mass on its own. When paired with a GLP-1 treatment such as Lilly's tirzepatide, the companies say it could further reduce fat mass while helping patients regain lean mass they lost during weight loss ^[1].

Under the deal, Lilly will fund the drug's development and provide resources and expertise. Laekna will keep the global rights to LAE102 and plans to run the early-stage trial in China ^[1]. The partnership marks Lilly's second major move into the muscle-preservation space. Last year, the company spent about $2 billion to acquire Versanis and its drug, which acts directly on fat cells without causing lean mass loss ^[1].

Lilly is not alone in chasing this problem. Regeneron and Scholar Rock are also testing treatments aimed at preserving muscle during weight loss, according to Reuters ^[1]. The interest reflects how big the stakes are: the obesity treatment market is expected to reach $150 billion in revenue within the next decade ^[1].

Why it matters for patients

Muscle loss is a known issue for people losing significant weight, whether through diet and exercise, bariatric surgery, or GLP-1 drugs like Lilly's Zepbound or Novo Nordisk's Wegovy ^[1]. Losing lean mass along with fat can affect strength, metabolism, and long-term health, which is why drugmakers are racing to find add-on treatments that protect muscle without undermining the fat loss these drugs are designed to produce.

For now, LAE102 is an early-stage experimental drug being tested in China, not an approved treatment available to patients ^[1]. The lab results cited by Laekna — increased lean mass and decreased fat mass — come from preclinical studies, not from human trials, so it is not yet known whether these effects will hold up in people, or what the timeline for approval might look like. Patients currently on tirzepatide (Mounjaro or Zepbound) or semaglutide (Ozempic, Wegovy, or Rybelsus) will not see any near-term changes to their treatment because of this deal.

The Versanis and Laekna deals together show that Lilly considers muscle preservation a priority alongside fat loss, and that the company is willing to work with international partners and place bets on more than one biological approach. Whether either approach ends up working well enough, and safely enough, to reach the market is something only future clinical trial data can answer.

What happens next

Laekna plans to advance LAE102 into early-stage human trials in China, with Lilly funding that work and providing scientific support ^[1]. No timeline for U.S. trials, regulatory filings, or approval has been disclosed in the available reporting. Investors and patients watching this space will likely need to wait for trial results, which are not yet available, before knowing whether this antibody approach can be added to GLP-1 treatment regimens in the future.