Eli Lilly (NASDAQ:LLY) has entered a definitive merger agreement to acquire Morphic Holding (NASDAQ:MORF) for approximately $3.2 billion.

The deal, priced at $57 per share in cash, represents an 87.2% premium to Morphic's 30-day average stock price and includes a tender offer for all outstanding shares.

Dr.Daniel Skovronsky, Lilly’s Chief Scientific Officer, commented on the deal, stating “We are eager to welcome Morphic colleagues to Lilly as this strategic transaction reinforces our commitment to developing new therapies in gastroenterology.”

The transaction has been approved by the boards of directors of both companies and is expected to close in the third quarter of 2024.