Lilly agrees $2.875 billion Merida Biosciences deal

• Lilly agreed to acquire Merida Biosciences for up to $2.875 billion in cash, including upfront and milestone payments.
• The acquisition adds Merida’s antibody-engineering platform and pipeline of autoimmune and allergic disease treatments.
• Merida’s lead program MER511 is in Phase 1 development for Graves’ disease and thyroid eye disease.

Lilly (NYSE:LLY) signed a definitive agreement to acquire Merida Biosciences for up to $2.875 billion in cash, adding precision biologics programs targeting autoimmune and allergic diseases.

The transaction expands Lilly’s biotechnology pipeline with Merida’s antibody-engineering platform, which is designed to remove disease-causing antibodies while maintaining normal immune system activity.

Merida’s lead program MER511 is in Phase 1 clinical development for Graves’ disease and thyroid eye disease, while its pipeline also includes MER769, a preclinical program targeting IgE-driven conditions such as food allergy, asthma, and chronic spontaneous urticaria.

Lilly said the acquisition includes upfront and contingent milestone payments and is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.

Lilly develops medicines across areas including diabetes, obesity, oncology, immunology, and other therapeutic categories, with the acquisition adding to its focus on immune-mediated diseases.

After closing, Lilly said the transaction will be reflected in its GAAP financial results and guidance, while Merida’s earlier-stage programs continue development within Lilly’s broader research portfolio.