Eli Lilly to Buy Merida Biosciences for $2.88B

Eli Lilly announced on Monday it will acquire privately held Merida Biosciences for up to $2.88 billion in cash, as the pharmaceutical giant pushes further into treatments for autoimmune and allergic disease.

The deal combines an upfront cash payment with contingent milestone payments, though the companies did not disclose the exact split. Merida's core technology is an antibody-engineering platform designed to selectively degrade disease-causing autoantibodies while leaving the rest of the immune system intact.

The company's lead candidate, MER511, is in Phase 1 trials for Graves' disease and thyroid eye disease, two conditions linked to an overactive thyroid that can cause eye bulging, double vision and vision impairment. Early data showed the drug substantially lowered the thyroid-stimulating antibodies behind both diseases, with what the companies described as a favorable initial safety profile.

Merida's pipeline also includes MER769, a preclinical program targeting food allergy, asthma and chronic urticaria, along with earlier-stage programs in kidney and other immune-mediated diseases.

The acquisition is Lilly's second major autoimmune deal this year, following its $2.4 billion purchase of Orna Therapeutics. Lilly has been on an acquisition spree funded by windfall profits from its obesity drugs, and is using that cash to diversify its pipeline beyond weight loss and diabetes. Leerink Partners analyst David Risinger said the move underscores "management's intent to diversify Lilly's pipeline beyond obesity."

Eli Lilly shares edged down about 0.2% in pre-market trading following the announcement. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.

This is not investment advice.