Nektar Therapeutics Wins $115 Million Verdict Against Eli Lilly in Contract Lawsuit

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Summary · why it matters

Nektar Therapeutics was awarded $90 million in damages after a jury found Eli Lilly in breach of contract over its handling of a drug for which Nektar held co-development and commercialization rights dating back to 2017, bringing the gross amount to roughly $115 million including simple interest, or about 5% of Nektar's market capitalization. The verdict, disclosed in Cedar Grove Capital Management's third-quarter 2026 investor letter, resolves a multi-year overhang on the stock, though the firm noted it had hoped for more, as Nektar had sought as much as $1 billion. Before the verdict, a jury note asking the judge to explain the difference between no breach and breach with a $1 damage award spooked the market, wiping more than $200 million from Nektar's market capitalization, a loss that did not recover once the verdict came in Nektar's favor and was exacerbated by rising Treasury yields. Nektar closed at $39.91 on October 06, 2026, with a $1.36 billion market capitalization and a 6.40% year-to-date pullback, trading within a 52-week range of $33.40 to $109.00. Cedar Grove's Multi-Strategy Composite returned -12.7% in the third quarter of 2026, trailing the Russell 2000, Russell Microcap, and S&P 500, and has returned -26.2% since its January 14, 2026 inception.

Impact on assets 2

Biotech & Genomic Medicine± Mixed
Nektar Therapeutics
NKTR
▲ PositiveRegulationrelevance

Nektar won a $115M gross verdict against Eli Lilly, resolving a multi-year legal overhang on the stock.

Eli Lilly and Company
LLY
▼ NegativeRegulationrelevance

Jury found Eli Lilly in breach of contract over a drug Nektar had co-development rights to, resulting in a $90M damages verdict.

Off-coverage companies 1

Cedar Grove Capital Managementi
Private± Mixedrelevance