A U.S. jury awarded Nektar Therapeutics $90 million in its dispute with Eli Lilly over development of the autoimmune disease therapy rezpegaldesleukin (rezpeg). The verdict concluded Lilly breached an implied covenant of good faith and fair dealing, delivering a win for Nektar—though the damages were below the amount the company sought. The outcome keeps pressure on partner-biodeals that hinge on shared development obligations and could influence how companies structure governance and milestones in collaboration agreements for immunology drugs. The dispute also reinforces Nektar’s strategic position around rezpeg and may affect negotiating posture in future licensing and co-development arrangements, particularly where progress-dependent decisions are contested. For biotech investors and operators, the central takeaway is that contract terms around “good faith” performance are increasingly being treated as enforceable levers—not just legal boilerplate.