Eli Lilly & Co. announced its intention to acquire privately held Merida Biosciences for up to $2.88 billion in cash. This acquisition is a strategic move to broaden Lilly's presence in the autoimmune and allergic disease sectors. The pharmaceutical giant aims to diversify its pipeline, which has been significantly bolstered by the success of its obesity and diabetes drugs, Zepbound and Mounjaro.
Lilly has been actively engaged in a record-setting acquisition spree in 2026, with announced deals exceeding $20 billion. This aggressive spending strategy reflects the company's efforts to leverage the substantial profits from its metabolic drugs to target earlier-stage medicines and position itself for future blockbuster drug development. The deal includes an upfront payment and additional payments contingent on Merida Biosciences achieving specific milestones.
Merida Biosciences' lead drug candidate, MER511, is in early development for autoimmune disorders such as Graves' disease and thyroid eye disease. Initial data has shown MER511 can substantially reduce thyroid-stimulating antibodies linked to these conditions with a favorable safety profile. Merida's pipeline also features MER769, an experimental treatment for food allergies, asthma, and other allergic diseases, along with earlier-stage programs for kidney and other immune-mediated conditions. The acquisition is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.
