Eli Lilly to acquire Morphic in $3.2bn deal to expand integrin therapy development

TAGS

In a major strategic move, Eli Lilly and Company (NYSE: LLY) has announced a definitive agreement to acquire Morphic Holding, Inc. (NASDAQ: MORF), a biopharmaceutical company known for its innovative work in developing oral integrin therapies. The acquisition, valued at $57 per share in cash, totals approximately $3.2 billion. This acquisition represents a significant premium over Morphic’s recent stock prices, underscoring the value Lilly sees in Morphic’s integrin inhibitor technologies and its potential for treating serious chronic diseases such as inflammatory bowel disease (IBD).

Morphic’s leading program includes MORF-057, a selective oral small molecule inhibitor of α4β7 integrin, currently in Phase 2 studies for ulcerative colitis and Crohn’s disease. This molecule is part of a broader pipeline aimed at addressing various autoimmune and fibrotic diseases, as well as cancer and pulmonary hypertensive diseases.

See also  Eli Lilly's Emgality gets FDA green light for migraine prevention

Daniel Skovronsky, M.D., Ph.D., chief scientific officer of Lilly and president of Lilly Research Laboratories and Lilly Immunology, highlighted the strategic fit: “Oral therapies could open up new possibilities for earlier intervention in diseases like ulcerative colitis, and also provide the potential for combination therapy to help patients with more severe disease. We are eager to welcome Morphic colleagues to Lilly as this strategic transaction reinforces our commitment to developing new therapies in the field of gastroenterology.”

See also  Lilly announces promising updates on olomorasib in KRAS G12C-mutant cancers at ASCO 2024

Praveen Tipirneni, M.D., CEO of Morphic Therapeutic, expressed his support for the deal, stating, “Morphic has always believed that the immense potential of MORF-057 to benefit patients suffering from IBD could be optimized by the ideal strategic partner. Lilly brings unparalleled resources and commitment to the inflammation and immunology field.”

The transaction is set to be finalized by the third quarter of 2024, pending customary closing conditions, including the tender of a majority of the outstanding shares of Morphic’s common stock. Following the completion of the tender offer, Lilly plans to acquire any remaining shares through a second-step merger.

This deal is expected to be immediately accretive to Eli Lilly’s earnings per share, given the synergies expected from integrating Morphic’s technologies with Lilly’s existing capabilities in drug development and commercialization.

See also  Eli Lilly's tirzepatide shows promising results in MASH treatment study

The acquisition of Morphic by Eli Lilly is poised to significantly advance the treatment landscape for patients with IBD and potentially other chronic conditions. By leveraging Morphic’s innovative integrin technology, Lilly aims to enhance its gastroenterology portfolio and reinforce its position as a leader in this therapeutic area.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

CATEGORIES
TAGS
Share This