On September 24, 2026, the jury returned a verdict finding that Lilly breached the implied covenant of good faith and fair dealing in the License Agreement. The jury awarded the Company $90 million in damages plus interest to be determined by the District Court. The jury’s verdict remains subject to post-trial proceedings, and any resulting judgment may be subject to appeal.

In August 2023, Nektar Therapeutics (the "Company") filed a complaint in the U.S. District Court for the Northern District of California (the "District Court") against Eli Lilly and Company ("Lilly") alleging, among other claims, breach of contract and breach of the implied covenant of good faith and fair dealing in connection with the license agreement governing the parties’ prior collaboration for the development and commercialization of rezpegaldesleukin (the "License Agreement"). The case, Nektar Therapeutics v. Eli Lilly & Co., Case No. 3:23-cv-03943-JD, proceeded to a jury trial beginning on September 8, 2026.