Eli Lilly Strikes $2.88 Billion Deal to Buy Merida Biosciences
Eli Lilly (LLY) has agreed to acquire Merida Biosciences for up to $2.875 billion in cash, as it seeks to expand its portfolio of autoimmune and allergic disease therapies, the companies said Monday.Merida is advancing precision therapeutics for serious autoimmune and allergic diseases, with its lead program -- called MER511 -- currently in early-stage trials for Graves' disease and thyroid eye disease conditions.Graves' disease is an autoimmune disease that affects thyroid gland. Roughly 3 million people in the US get afflicted with the Graves' disease, and about 25% to 40% of these patients go on to develop thyroid eye disease, which could lead to a loss of vision in severe cases, according to the companies.Privately-held Merida is also undertaking preclinical studies for another therapy candidate -- MER769 -- targeting food allergies, asthma, chronic spontaneous urticaria and other allergy-related conditions."We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects," Francisco Ramirez-Valle, senior vice president for Lilly immunology research and early clinical development, said.Lilly could apply Merida's precision approach across a broad range of antibody-driven diseases, according to Ramirez-Valle."Merida was founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly," Merida Chief Executive Adam Townsend said. "Joining Lilly gives our science the resources and commitment to realize its potential for patients with immune-mediated conditions."The deal, which includes milestone payments and requires regulatory approvals, is anticipated to close in the last quarter of this year, the joint statement said.Shares of Lilly were down down 1.8% in Monday trading. The stock is up 7.4% so far this year.The Merida deal is the latest in a string of acquisitions for Lilly this year. Last month, the pharmaceutical giant announced it agreed to acquire AtaiBeckley (ATAI), a clinical-stage biopharmaceutical company, for up to $3.8 billion.In May, Lilly announced a deal to acquire three vaccine developers with a combined value of up to $3.83 billion, as the drugmaker aimed to strengthen its infectious disease portfolio.Price: $1156.84, Change: $-17.77, Percent Change: -1.51%
