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Eli Lilly to acquire Merida Biosciences for up to $2.875 billion to expand its precision therapy pipeline.

Eli Lilly is acquiring Merida Biosciences, a Massachusetts-based biotech company, for up to $2.875 billion in cash. The deal includes an upfront payment and contingent milestones and is expected to close in the fourth quarter, pending clearances.

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Merida Biosciences will provide Eli Lilly with a precision degradation platform that generates targeted biologic therapies to destroy disease-causing autoantibodies. This approach targets the underlying biology of autoimmune and diseases without suppressing the immune system. Key assets from the acquisition include the investigational therapy MER511, which is being studied for thyroid eye disease and Graves’ disease, and the preclinical antibody MER769, which has potential for food allergy, asthma, and chronic spontaneous urticaria. Francisco Ramírez-Valle, senior vice president of Lilly’s immunology research and early clinical development, stated that the company sees potential to apply this precision approach across a broad range of antibody-driven diseases.

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