# Eli Lilly just placed a $40 million bet on the next injectable boom > Source: > Published: 2026-07-01 09:25:02+00:00 [Eli Lilly](https://fortune.com/company/eli-lilly/) just wrote a [$40 million check](https://investors.absci.com/news-releases/news-release-details/absci-announces-pricing-100-million-underwritten-offering) to cure baldness. The pharma giant behind Zepbound and Mounjaro—which made the injectable culturally normal for millions of Americans—led a [$100 million stock offering](https://investors.absci.com/news-releases/news-release-details/absci-announces-pricing-100-million-underwritten-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. Last week, Lilly’s deal with Absci closed the same day Absci released [positive Phase 1 safety data](https://investors.absci.com/news-releases/news-release-details/absci-announces-positive-interim-phase-1-data-headlinetm-trial) on ABS-201. Absci CEO Sean McClain told me the $40 million buys Lilly “tickets to the game.” In short, proximity. They share a DTC ambition—Lilly 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. “You could see in the future where you’ve combined those products,” he told me. “Total vitality at an affordable price.” That’s the market this deal is actually pointing at.[ ](https://www.jpmorgan.com/insights/global-research/current-events/obesity-drugs)GLP-1s have made [injecting yourself unremarkable](https://www.jpmorgan.com/insights/global-research/current-events/obesity-drugs). The broader injectable market is a[ $650 billion opportunity](https://www.futuremarketinsights.com/reports/injectable-drugs-market) in 2026. GLP-1s alone are[ projected to hit $190–$200 billion](https://www.morganstanley.com/insights/articles/glp1-weight-loss-market-may-double-190-billion-2035) by 2030. But oral GLP-1 versions from Lilly and [Novo Nordisk](https://fortune.com/company/novo-nordisk/) are already on shelves, and the convenience argument for shots is getting harder to make—unless the biology demands it. Absci’s CMO Ransi Somaratne’s 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’t. McClain’s bigger argument is about where value actually lives in AI drug discovery—as [AI tools become cheaper](https://fortune.com/2026/06/15/exclusive-ai-dna-radical-numerics-eric-nguyen-biology-biodefense-drug-discovery/) and more widely available, pharma companies will pay less and less to license them, meaning the only real leverage is owning the drug itself. Absci’s thesis is to use AI-designed drugs plus [clinical trials run in China](https://clinicaltrialsarena.com/news/absci-100m-financing-endometriosis-pattern-hair-loss-therapy/) at a fraction of U.S. cost to compress the path from target to Phase 2 proof-of-concept from $150 million to $15–$20 million. “AI, China, and DTC,” he said. “That is going to change the game in healthcare.” The money flooding into this space tells its own story. [Isomorphic Labs](https://fortune.com/2026/05/27/spacexs-ipo-filing-is-full-of-surprises/)—Alphabet’s AI drug design spinout—raised a $2.1 billion Series B in May. Earendil Labs, a U.S.-China AI biologics startup backed by [Sanofi](https://fortune.com/company/sanofi/) and [Pfizer](https://fortune.com/company/pfizer/), pulled in[ $787 million](https://www.biopharmadive.com/news/earendil-labs-financing-ai-biologics-china-sanofi/815336/) in March. And Xaira Therapeutics launched with[ $1 billion](https://www.fiercebiotech.com/biotech/new-ai-drug-discovery-powerhouse-xaira-rises-1b-funding) 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](https://investors.absci.com/news-releases/news-release-details/absci-announces-pricing-100-million-underwritten-offering) and is already in Phase 1. 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. See you tomorrow, **Lily Mae LazarusX:** [@LilyMaeLazarus](https://archive.ph/o/tzAhs/https://x.com/LilyMaeLazarus) **Email:** [lily.lazarus@fortune.com](mailto:lily.lazarus@fortune.com) Submit a deal for the Term Sheet newsletter [here](mailto:termsheet@fortune.com). *Joey Abrams curated the deals section of today’s newsletter.* [Subscribe here](https://archive.ph/o/tzAhs/https://fortune.com/newsletters/term-sheet). ### VENTURE DEALS - [ Beeline Medicines](https://beelinemedicines.com/), 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 **Bain** **Capital**, **Canada Pension** **Plan** **Investment** **Board**, and others. - [ Dominion Dynamics](https://www.defendthedominion.com/), 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. **Georgian** led the round and was joined by **Valor Equity Partners**, **Expeditions**, Lakestar, **OMERS**, and others. - [ Higharc](https://www.higharc.com/), 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. **Insight** **Partners** led the round. - [ Stathera](https://www.stathera.com/), a Montreal, Canada-based semiconductor company, raised $55 million in Series B funding. **Maverick** **Capital** led the round and was joined by **Celesta** **Capital**, **BDC** **Capital**, **MediaTek** **Innovation** **Fund**, **TXC** **Corporation**, and **Ultratech Capital** **Partners**. - [ Queue](https://queue.inc/), a Palo Alto, Calif.-based developer of a fully-autonomous robotic pharmacy, raised $12.6 million in seed funding. **AlleyCorp** led the round and was joined by **House** **Capital**, **Ubiquity** **Ventures**, **Grep** **Ventures**, and **Banter** **Capital**. - [ MDOTM](https://www.mdotm.ai/), a London, U.K.-based AI-powered portfolio management platform for institutional investors and asset managers, raised $27 million in funding. **Expedition** **Growth** **Capital** led the round. - [ Pie](https://getpie.com/), a New York City-based AI-powered growth platform for small businesses, raised $19.5 million in Series A funding. **Lightspeed** **Venture** **Partners** led the round and was joined by Capital One Ventures, **SciFi VC**, **F-Prime**, **Commerce** **Ventures**, **WEX** **Venture** **Capital**, and existing investors. - [ Build.inc](https://build.inc/), 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. **Index** **Ventures** led the round and was joined by **Pebblebed**, **Puzzle Ventures**, and **Tiny.vc**. - [ Arcturus](https://www.arcturus.io/), a Los Angeles, Calif.-based advanced materials company developing materials for energy, aerospace, and industrial applications, raised $8 million in seed funding. **Initialized** **Capital** led the round and was joined by **1517**, **Breakthrough** **Energy** **Discovery**, **Toyota** **Ventures**, and **Wireframe** **Ventures**. - [ Dawnguard](https://dawnguard.ai/), an Amsterdam, Netherlands-based cybersecurity company, raised $6.3 million in pre-seed funding. **BNVT** **Capital** led the round and was joined by **Curiosity** **VC** and **eCAPITAL**. - [ Acti](https://openacti.com/), a Singapore-based agentic keyboard designed to automate workflows and text generation to help users work faster, raised $5.3 million in funding. **BITKRAFT** **Ventures** led the round. ### PRIVATE EQUITY - **Martis** **Capital** acquired a majority stake in [ Deerfield Group](https://deerfieldgroup.com/), a Conshohocken, Pa.-based marketing, communications, and media partner for the healthcare and life sciences sectors. Financial terms were not disclosed. - **PestCo** **Holdings**, a portfolio company of **Thompson** **Street** **Capital** **Partners**, acquired [ Arrow Pest Control](https://arrownj.com/), a Morganville, N.J.-based pest control company. Financial terms were not disclosed. - **ServiceTrade**, backed by **JMI** **Equity**, acquired [ Mura](https://www.mura.co/), a Durham, N.C.-based agentic AI platform that automates field service billing and collections. Financial terms were not disclosed. ### EXITS - **Authentic Brands** **Group** acquired [ Care Bears](https://www.carebears.com/), a Cleveland, Ohio-based family entertainment brand, from **Cloverlay**. Financial terms were not disclosed. - **The** **Visualize Group** agreed to acquire [ eCOGRA](https://ecogra.org/), a London, U.K.-based testing, inspection, certification, and compliance services provider for the gaming industry, from **Hanover** **Investors** **Management**. Financial terms were not disclosed. ### FUNDS + FUNDS OF FUNDS - [ Tapestry VC](https://www.tapestry.vc/), a London, U.K.-based venture capital firm, raised $80 million for its third fund focused on repeat founders. **Subscribe to Fortune Gulf Brief**. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it.