Eli Lilly announced it will acquire privately held Merida Biosciences for up to $2.88 billion in cash, expanding its immunology pipeline with an experimental treatment targeting thyroid-related autoimmune diseases.
The acquisition continues Lilly’s recent push to diversify beyond obesity and diabetes treatments following the strong commercial success of its weight-loss medications. The pharmaceutical company has increased its deal activity as it looks to strengthen its portfolio across additional therapeutic areas.
Lilly Expands Autoimmune Disease Pipeline
Merida Biosciences is developing a new class of precision therapeutics designed to selectively target disease-causing antibodies involved in immune-related conditions.
The company’s lead candidate, MER511, is an early-stage treatment being developed for autoimmune disorders including Graves’ disease and thyroid eye disease.
“We’re building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects,” said Francisco Ramírez-Valle, senior vice president of Lilly immunology research and early clinical development. “Merida’s lead program is designed to do exactly that.”
The agreement includes an upfront payment and additional milestone-based payments, although Lilly did not disclose the specific financial terms. The transaction is expected to close during the fourth quarter.
Focus on Thyroid Autoimmune Conditions
Graves’ disease causes the thyroid gland to become overactive and produce excessive hormones, while thyroid eye disease can result in inflammation, eye bulging, double vision and potential vision impairment.
Lilly said early data from MER511 showed a substantial reduction in thyroid-stimulating antibodies associated with these conditions, while maintaining a favorable initial safety profile.
Current treatments for Graves’ disease include antithyroid medications, radioactive iodine and surgery. For thyroid eye disease, approved treatment options include Amgen’s Tepezza and Viridian Therapeutics’ Lumvoa.
Merida’s Broader Immunology Portfolio
Beyond MER511, Merida Biosciences is also developing MER769, an experimental therapy targeting food allergies, asthma and other allergic diseases.
The company’s pipeline includes additional early-stage programs focused on kidney-related conditions and other immune-mediated disorders.
Analysts viewed the acquisition as another step in Lilly’s strategy to expand beyond metabolic diseases and build a broader pipeline of innovative therapies.
