Eli Lilly agrees to acquire Merida Biosciences
Money MovesUp to $2.875 billion for a biotech whose drugs destroy disease-causing antibodies instead of suppressing the immune system
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Overview
Updated 11 hours agoEli Lilly agreed to buy Merida Biosciences for up to $2.875 billion. The deal adds a platform that destroys the specific antibodies driving autoimmune disease instead of broadly suppressing the immune system. Merida's lead drug, MER511, is in early human testing for Graves' disease and thyroid eye disease.
The purchase is Lilly's thirteenth acquisition this year, part of a push to invest profits from its weight-loss drugs in new therapeutic areas. Merida launched about 17 months ago with $121 million in funding. The price includes milestone payments tied to future results, a structure that reflects the risk of buying a drug still in Phase 1.
Why it matters
If MER511 works, millions of Graves' disease patients could get a treatment that targets the cause of their illness rather than just managing symptoms.
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Indianapolis-based pharmaceutical giant whose weight-loss and diabetes drugs generated the profits funding its 2026 acquisition spree.
Cambridge, Massachusetts biotech developing drugs that selectively degrade the antibodies causing autoimmune and allergic diseases.
Timeline
March 2025 September 2026
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Lilly agrees to acquire Merida Biosciences for up to $2.875 billion
Today M&ALilly announces a definitive agreement to buy Merida, adding MER511, a Phase 1 drug for Graves' disease and thyroid eye disease. Closing is expected in Q4 2026.
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Lilly CEO touts acquisition strategy
StatementDavid Ricks tells investors Lilly is expanding into emerging therapeutic areas through business development.
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Lilly announces three vaccine acquisitions
M&ALilly agrees to buy Curevo, LimmaTech Biologics, and the Vaccine Company as it expands its pipeline.
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Merida launches with $121 million
FundingThe Cambridge, Massachusetts biotech launches with backing for biologics that selectively degrade disease-causing antibodies.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
Bristol Myers Squibb acquires Celgene (2019)
Bristol Myers Squibb agreed in January 2019 to buy Celgene for $74 billion, betting on experimental cancer and immunology drugs to replace revenue from the blood cancer drug Revlimid as its patents expired. The deal closed in November 2019 after a fight with activist investor Starboard Value, which argued the price was too high.
BMS absorbed Celgene's programs, including the immunology drug ozanimod, and faced shareholder pressure over the price.
Some Celgene pipeline bets paid off and others disappointed, illustrating the risk of buying early-stage science at a premium.
Like BMS-Celgene, the Merida deal is a bet that experimental science can extend a pharma giant's growth. Phase 1 drugs often fail, which is why the price is built around milestones.
Eli Lilly acquires Loxo Oncology (2019)
Lilly agreed in January 2019 to buy Loxo Oncology for about $8 billion, paying for a platform of targeted cancer drugs, including a treatment for tumors with specific genetic mutations. The deal closed during 2019, and Lilly folded Loxo's team and pipeline into its oncology division.
Loxo's lead drug, selpercatinib, won FDA approval in 2020 and became the marketed product Retevmo.
The deal became a template for Lilly's platform-buying strategy, which it continues with Merida.
Lilly has a track record of buying early-stage platform companies and turning their science into products. The Merida deal follows the same playbook in immunology.
Amgen acquires Horizon Therapeutics (2022–2023)
Amgen agreed in December 2022 to buy Horizon for $27.8 billion, paying a premium for Tepezza, the leading thyroid eye disease drug, and Krystexxa for gout. The Federal Trade Commission sued to block the deal in May 2023, arguing Amgen could use rebate contracts to keep rivals out. The two sides settled in September 2023, and Amgen closed the deal the next month.
Amgen closed the acquisition after agreeing to a consent order restricting how it used rebate contracts.
Tepezza became a top product for Amgen, and the FTC's challenge signaled closer antitrust scrutiny of pharma M&A.
Tepezza is the existing standard of care for thyroid eye disease, the condition Merida's MER511 would challenge. The deal also shows pharma acquisitions can draw antitrust scrutiny even after approval.
