Lilly to acquire clinical-stage biopharma company Versanis Bio
American pharma giant Eli Lilly and Company (Lilly) and Versanis Bio have announced a definitive agreement in which the former will acquire the privately-held clinical-stage biopharmaceutical company.
Founded by Aditum Bio in 2021, Versanis Bio is focused on the development of new treatments for cardiometabolic diseases.
The acquisition will see Versanis Bio’s leading asset, bimagrumab, a monoclonal antibody currently undergoing the BELIEVE Phase 2b study, transferred to Lilly’s portfolio. Bimagrumab targets activin type II A and B receptors to block activin and myostatin signaling, showing potential to help adults maintain healthy body composition and achieve fat loss. The drug candidate is also being tested in combination with semaglutide in overweight or obese adults, with promising results indicating the potential for improved outcomes for people living with obesity-related complications.
“Lilly is committed to investigating potential new medicines to fight cardiometabolic diseases, including obesity, a chronic disease that affects over 100 million Americans,” said Ruth Gimeno, group vice president, diabetes, obesity, and cardiometabolic research at Lilly. “By unifying the knowledge and expertise in incretin biology at Lilly with the deep understanding of activin biology at Versanis, we aim to harness the potential benefits of such combinations for patients.”
Lilly set to purchase Versanis Bio in potential $1.9bn deal. Photo courtesy of Momoneymoproblemz/Wikimedia Commons.
Versanis Bio chairman and CEO, Mark Pruzanski, echoed these sentiments, expressing confidence in Lilly’s ability to utilize bimagrumab to its full potential. He noted, “It has been a privilege for our team to advance bimagrumab to address one of the greatest health crises of our time. As a global leader developing life-changing medicines, Lilly is ideally positioned to realize the potential of bimagrumab in combination with its incretin therapies to benefit people living with cardiometabolic diseases.”
According to the acquisition agreement, Versanis Bio shareholders stand to receive up to $1.925 billion in cash, including an upfront payment and further payments contingent on achieving specific development and sales milestones. The deal is subject to standard closing conditions and the accounting treatment of the transaction will be determined according to Generally Accepted Accounting Principles (GAAP) upon closing. Subsequent to its completion, the transaction will be reflected in Lilly’s financial results and guidance.