Pharmaceutical industry: Eli Lilly strengthens immunology business with billion-dollar acquisition
The pharmaceutical company is paying up to $2.88 billion for the acquisition of biotech firm Merida Biosciences. The purchase is financed with the billions from the weight loss injection boom.
Frankfurt - US pharmaceutical giant Eli Lilly is bolstering its business in autoimmune and allergy diseases through a billion-dollar acquisition. The company announced on Monday that it will purchase biotech firm Merida Biosciences for up to $2.88 billion, paid in a combination of an upfront payment and performance-based milestone payments.
The deal is set to close in the fourth quarter of the year. Merida specializes in developing medications that target disease-causing antibodies. The lead candidate, MER511, is currently in early-stage clinical trials for autoimmune disorders such as basedow's disease and thyroid-related eye conditions. Preliminary data suggests the drug significantly reduces the relevant antibodies.
Merida's pipeline also includes an experimental drug targeting food allergies and asthma. Eli Lilly is financing the acquisition with its strong earnings from medications for obesity and diabetes. The company is on a buying spree to diversify its portfolio and reduce its dependence on its top-selling products for weight loss. In 2026, the cost of acquisitions is already expected to surpass those of previous years.
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