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Eli Lilly to buy Merida Biosciences for $2.875 billion
The deal is aimed at expanding Lilly's pipeline in autoimmune and allergic diseases via MER511, which is in Phase 1 for Graves' disease and thyroid eye disease.
Eli Lilly plans to acquire Merida Biosciences in a $2.875 billion deal, the company said on Aug. 31, to broaden its development portfolio for serious autoimmune and allergic diseases, according to MarketBeat Ratings.
Merida's lead candidate, MER511, is in Phase 1 for Graves' disease and thyroid eye disease (TED). The report notes that Graves' disease affects about three million people in the United States, and roughly 25% to 40% of those patients go on to develop TED.
If approved, MER511 would be positioned as the first treatment for both conditions that directly targets the autoantibodies that cause them. MarketBeat Ratings also frames the acquisition as part of Lilly's strategy to use financial strength tied to its GLP-1 franchise to diversify into immunology.
The report adds that the Merida transaction is meant more for what it signals about management's next-phase thinking for GLP-1 cash flow than for its immediate cost, given Lilly's market capitalization. It says Lilly is leaning toward investing in adjacent, higher-conviction disease areas rather than only defending its lead product.