VivoSim Labs, Inc. (Nasdaq: VIVS) announced it has received a $5 million milestone payment from Eli Lilly, tied to the dosing of the first patient in Phase 2 studies of a drug that VivoSim previously developed and sold outright to Eli Lilly as part of an inflammatory bowel disease program.

VivoSim remains eligible for up to $45 million in additional milestone payments as the drug advances through regulatory and commercial stages, though its development is entirely directed by Eli Lilly.

The San Diego-based company also issued revenue guidance for fiscal year 2027, projecting revenue growth of more than 500%, which it attributed to expanding demand for its contract research services using New Approach Methodologies (NAM) models among pharmaceutical customers.

VivoSim said its NAMkind™ Liver spheroid model achieved 91% predictive accuracy, 90% sensitivity, 95% specificity, and 99% precision under repeat-dose conditions. Its NAMkind™ Intestine models reportedly deliver greater than 90% sensitivity and overall accuracy for predicting drug-induced diarrhea.

The company noted that the U.S. Food and Drug Administration has been encouraging the use of human-relevant NAM models as alternatives to animal studies, following its April 2025 Roadmap to Reducing Animal Testing in Preclinical Safety Studies.