Eli Lilly to Acquire Merida Biosciences for Up to $2.875 Bn

The acquisition will give Lilly access to Merida’s antibody-engineering platform, which is designed to selectively degrade pathogenic autoantibodies while preserving normal immune function.

Eli Lilly and Company has entered into a definitive agreement to acquire biotechnology company Merida Biosciences for up to $2.875 billion in cash, including an upfront payment and contingent milestone payments, the companies announced on August 31.

The acquisition will give Lilly access to Merida’s antibody-engineering platform, which is designed to selectively degrade pathogenic autoantibodies while preserving normal immune function. The approach is being developed for serious autoimmune and allergic diseases where disease-causing antibodies play a central role.

Merida’s lead candidate, MER511, is currently in Phase 1 development for Graves’ disease and thyroid eye disease (TED). Initial Phase 1 data showed robust reductions in thyroid-stimulating antibodies, with an initial favorable safety profile.

Graves’ disease affects approximately 3 million people in the US, while an estimated 25% to 40% of patients with Graves’ disease develop TED. The conditions are driven by thyroid-stimulating immunoglobulins that activate the thyroid-stimulating hormone receptor. Existing treatments are available for both diseases, but do not directly eliminate the pathogenic autoantibodies responsible for them.

Merida is also developing MER769, a preclinical program targeting diseases driven by antibodies involved in allergic reactions, including food allergy, asthma and chronic spontaneous urticaria. Its earlier-stage pipeline includes programs targeting immune-mediated kidney diseases such as membranous nephropathy.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026.

Following the acquisition, Lilly will determine the accounting treatment under Generally Accepted Accounting Principles (GAAP), with the transaction reflected in its financial results and financial guidance after closing.

Francisco Ramírez-Valle, MD, PhD, senior vice president, Lilly immunology research and early clinical development, said the company sees potential for Merida’s precision approach across a broader range of antibody-driven diseases.

Merida CEO Adam Townsend said the company’s technology was developed to directly target disease-driving antibodies rather than broadly suppressing the immune system.

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