Lilly to transform chronic disease management with Sigilon Therapeutics acquisition

Pharmaceutical giant Eli Lilly and Company (Lilly) has announced its definitive agreement to acquire Nasdaq-listed biopharma innovator Sigilon Therapeutics, in a move set to significantly impact the biopharmaceutical industry and the treatment of chronic diseases.

The deal, valued at approximately $309.6 million excluding shares held by Lilly, not only promises to reshape the landscape of chronic disease management but also represents a step forward in the pursuit of functional cures.

Sigilon Therapeutics, founded by Flagship Pioneering, Daniel Anderson, and Robert Langer, of the Massachusetts Institute of Technology, has made a name for itself in the biopharma industry.

The company is known for its Shielded Living Therapeutics platform, which harnesses the power of human cells to develop functional cures for a broad spectrum of acute and chronic diseases.

Sigilon Therapeutics’ engineered cell-based therapies, encapsulated by its proprietary Afibromer biomaterials matrix, are designed to replace missing or deficient therapeutic molecules in patients living with diseases such as diabetes, potentially shielding them from immune rejection.

This acquisition underscores Lilly’s commitment to fostering innovation and expanding its cell therapy portfolio, further solidifying its position in the biopharma sector.

Lilly to acquire Sigilon Therapeutics in $309.6m deal. Photo courtesy of Momoneymoproblemz/Wikimedia Commons.

Lilly and Sigilon Therapeutics have been partners since 2018, collaborating on the development of encapsulated cell therapies such as SIG-002, designed to offer a long-term solution for type 1 diabetes management. These novel treatments aim to revolutionize patient care, sensing blood glucose levels while restoring and releasing insulin production, ultimately freeing patients from continuous disease management.

Ruth Gimeno – Lilly group vice president of diabetes, obesity and cardiometabolic research said: “Despite significant advancement in treatment for people living with type 1 diabetes, many continue to live with a high disease burden every day.

“By combining Sigilon’s talent and expertise in cell therapy with the knowledge and skills of Lilly’s research and development teams, we will enhance opportunities to create innovative islet cell therapy solutions to improve the care of people living with diabetes.”

The definitive agreement details a tender offer by Lilly to acquire all outstanding shares of Sigilon Therapeutics at a purchase price of $14.92 per share in cash, payable at closing.

Additionally, each share comes with one non-tradeable contingent value right (CVR), potentially elevating the total consideration to a robust $126.56 per share in cash without interest. The CVR entitles holders to further cash payments upon reaching certain development milestones, including the initiation of human clinical trials and the receipt of regulatory approval for specific products.

Rogerio Vivaldi — Sigilon Therapeutics CEO said: “This agreement represents the culmination of the important work led by our research and development team to continue advancing SIG-002 at Lilly – the preeminent leader in the treatment of diabetes.

“As a person with type 1 diabetes and a treating physician, I am a passionate believer in the potential of SIG-002 and am very proud of our team’s accomplishments in developing and optimizing this product candidate using our novel platform technology.

“With deep industry expertise, Lilly is well-positioned to apply its industry-leading clinical and technical capabilities to harness the full potential of SIG-002 for the benefit of patients and their caregivers.”

Expected to close in Q3 2023, the transaction is not contingent on any financing condition. Post-tender offer, Lilly will acquire any remaining shares of Sigilon Therapeutics through a second-step merger at the same consideration. Sigilon Therapeutics’ board of directors has unanimously recommended that stockholders tender their shares.