Eli Lilly expands biotech footprint with new San Diego incubator

Eli Lilly has opened a new, 82,514 sq. ft (7,666 m²), Gateway Labs incubator in San Diego, already hosting several early-stage biotechs with a capacity for 15 in total, in a co-working research space designed to foster collaboration.

Why it matters: The site strengthens Lilly’s ties to the West Coast biotech scene and provides startups with access to its scientific resources and funding opportunities.

Backstory: Lilly’s Gateway Labs are co-working incubators designed to foster collaboration among biotech startups, academia, and large pharma. The model has already taken root in South San Francisco, Boston, and Beijing. Gateway Labs companies have collectively raised $2 billion, advancing more than 50 therapeutics and platforms.

Big picture: This U.S. expansion stands in contrast to stalled ambitions across the Atlantic. Lilly had plans to open its first European Gateway Labs in the U.K., but those are now on pause, caught in the crosswinds of pricing pressure and regulatory uncertainty, with Lilly’s CEO qualifying UK drug pricing policy as "The worst country in Europe".