VivoSim Labs, Inc. (NASDAQ:VIVS) shares are up on Wednesday as the company disclosed a significant milestone payment from Eli Lilly and Company (NYSE:LLY) and provided optimistic revenue guidance for FY2027.

The stock’s surge comes amid a broader market that is showing slight gains, with S&P 500 futures up 0.3%.

Eli Lilly Milestone Payment & Outlook

VivoSim Labs received a $5 million milestone payment from Eli Lilly after the first patient was dosed in a Phase 2 trial for its former inflammatory bowel disease drug program, now owned and developed by Lilly.

VivoSim remains eligible for up to $45 million in additional milestone payments tied to future regulatory and commercial milestones. The company also announced fiscal 2027 revenue guidance.

The company also anticipates over 500% revenue growth in fiscal 2027. It is expected to benefit from strong customer interest in its next-generation 3D human cellular models for preclinical safety.

Company Context

VivoSim Labs (formerly known as Organovo Holdings Inc) is a biotechnology company focused on developing FXR314 for inflammatory bowel disease, including ulcerative colitis.

The company utilizes three-dimensional (3D) human tissues to provide predictive screening and research services for pharmaceutical and biotech companies.

The recent milestone payment from Eli Lilly and the anticipated revenue growth highlight VivoSim’s growing relevance in the biotech sector, particularly as demand for innovative drug testing methodologies increases.

The FDA’s push for human-relevant testing models further positions VivoSim as a key player in this evolving landscape.

VIVS Price Action: VivoSim Labs shares were up 18.36% at $0.98 at the time of publication on Wednesday. The stock is near its 52-week low of $0.78, according to Benzinga Pro data.

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