INDIANAPOLIS (dpa-AFX) - Eli Lilly and Co. (LLY) announced on Monday that it has agreed to acquire Merida Biosciences, a biotechnology company developing precision therapeutics for autoimmune and allergic diseases, in a transaction valued at up to $2.875 billion.
Merida's antibody-engineering platform is designed to selectively degrade disease-causing auto antibodies while preserving normal immune function. Its lead program, MER511, is in Phase 1 trial for Graves' disease and thyroid eye disease, with initial data showing robust reductions in pathogenic antibodies and a favorable safety profile.
The acquisition is expected to strengthen Lilly's immunology pipeline and expand its opportunity to elevate the standard of care for immune-mediated conditions with high unmet need. Merida's pipeline also includes MER769, a pre-clinical program targeting food allergy, asthma and chronic urticaria, along with earlier-stage programs in kidney and other immune-mediated diseases.
Under the terms, Eli Lilly will pay an upfront sum and contingent milestone payments totaling up to $2.875 billion in cash.
The deal is expected to close in the fourth quarter of 2026.
Ropes & Gray LLP is acting as legal counsel to Lilly. Centerview Partners LLC is acting as an exclusive financial advisor, and Goodwin Procter LLP is acting as legal counsel to Merida.
In pre-market activity on the NYSE, shares of Eli Lilly and Co. were down 0.23 percent, changing hands at $1,170.89, after closing Friday's regular session 0.13 percent lower.
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