M&A
Lilly to acquire Merida Biosciences for up to $2.875B
August 31, 2026
Biotech
M&A
Key Facts
Signal Type
M&A
Industry
Biotech
Companies
Eli Lilly and Company, Merida Biosciences, Inc.
Date
August 31, 2026
Eli Lilly and Merida Biosciences announced a definitive agreement for Lilly to acquire Merida for up to $2.875 billion in cash, including an upfront payment and contingent milestones. Merida is developing biologics that selectively degrade pathogenic autoantibodies, with lead program MER511 in Phase 1 for Graves' disease and thyroid eye disease. Initial Phase 1 data showed robust reductions in pathogenic thyroid-stimulating antibodies with a favorable safety profile. The transaction is expected to close in Q4 2026, subject to regulatory approvals.
Lilly's immunology research and clinical development team, led by Francisco Ramírez-Valle, will integrate Merida's platform and pipeline. Merida's CEO Adam Townsend and CSO Dario Gutierrez will join Lilly to advance the technology. Patients with Graves' disease (affecting ~3 million in the U.S.) and thyroid eye disease (25-40% of Graves' patients) are the primary beneficiaries, as current treatments do not directly target the underlying autoantibodies.
Monitor regulatory approvals for the deal closing in Q4 2026. Watch for updates on MER511 Phase 1 data and initiation of Phase 2 trials. Also track how Lilly integrates Merida's platform into its broader immunology R&D and whether additional pipeline programs advance into the clinic.
Source:
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