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Eli Lilly to Acquire USA’s Biopharma Company Morphic for $3.2 Bn

Written by : Nikita Saha

July 10, 2024

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The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.

Eli Lilly and Company has set foot to acquire Morphic, a biopharmaceutical company for approximately $3.2 billion.

The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.

The acquisition aims to expand Lilly’s immunology pipeline by integrating Morphic’s selective oral small molecule inhibitor of α4β7 integrin, which holds promise in treating IBD.

"We are eager to welcome Morphic colleagues to Lilly as this strategic transaction reinforces our commitment to developing new therapies in the field of gastroenterology, where Lilly has made significant investments to deliver first-in-class molecules for the benefit of patients," Daniel Skovronsky, chief scientific officer of Lilly and president, Lilly Research Laboratories, president, Lilly Immunology, stated.

This strategic move aligns with Lily’s goal to enhance treatment options for patients with IBD and advance gastroenterology research.

The Financial Roadmap

Per the agreement, Lilly will commence a tender offer to acquire all outstanding shares of Morphic for a purchase price of $57 per share in cash (an aggregate of approximately $3.2 billion) payable at closing.

Further, the transaction has been approved by the boards of directors of both companies.

For Lilly, Citi is acting as the exclusive financial advisor, and Kirkland & Ellis LLP is acting as legal counsel. While for Morphic, Centerview Partners LLC is acting as the exclusive financial advisor.

Evercore Group LLC also provided advice to Morphic. Fenwick & West LLP is acting as legal counsel.

US-based Morphic is a biopharmaceutical company developing a portfolio of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular, and metabolic diseases, fibrosis, and cancer.

Morphic's lead program known as MORF-057 is being evaluated in two phase II studies in ulcerative colitis and one phase II study in Crohn's disease.

"Morphic has always believed that the immense potential of MORF-057 to benefit patients suffering from IBD could be optimized by the ideal strategic partner. Lilly brings unparalleled resources and commitment to the inflammation and immunology field," commented Praveen Tipirneni, CEO, of Morphic Therapeutic.

Additionally, Morphic is developing a preclinical pipeline of other molecules for the treatment of autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases, and cancer.

Eli Lilly and Company, founded in 1876 by Colonel Eli Lilly, is an American pharmaceutical company. The company’s legacy includes pioneering mass-produced polio vaccine and insulin, as well as developing clinical depression drugs such as Prozac and antipsychotic medications. Today, Lilly continues to bring advancements in healthcare, focusing on diabetes drugs and precision medicine.

In January, pharmaceutical giant Eli Lilly inked a deal to acquire Nexus Pharmaceuticals’ injectable production facility in Pleasant Prairie, Wisconsin. However, the financial terms of the deal remain undisclosed.

Days back, Lilly joined hands with OpenAI to leverage its generative AI to develop antimicrobials that can be used to treat drug-resistant bacteria.

The collaboration aimed to invent novel antimicrobials that can effectively combat drug-resistant pathogens. Per the deal, Eli Lilly sought to leverage OpenAI’s generative AI capabilities to accelerate the discovery of these novel antimicrobials.


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