Eli Lilly to Spend Up to $7.8B on Centessa Buyout and $2B AI Drug Deal
Eli Lilly will acquire Centessa for $6.3B upfront plus $1.5B in milestones, integrating an orexin receptor 2 agonist pipeline and aiming for a Q3 close after approvals. It also struck a $2B AI drug deal with Insilico, including $115M upfront for a GLP-1 diabetes candidate.
1. Centessa Acquisition Details
Eli Lilly agreed to acquire Centessa Pharmaceuticals for $6.3 billion in upfront consideration plus up to $1.5 billion in contingent payments. The deal adds Centessa’s orexin receptor 2 agonist pipeline, led by cleminorexton for sleep disorders, and is expected to close in Q3 pending shareholder and regulatory approval.
2. AI Collaboration with Insilico
Lilly entered an agreement worth up to $2 billion with Insilico Medicine to secure exclusive rights for an AI-discovered GLP-1 diabetes therapy. The pact involves a $115 million upfront payment and milestone-based fees tied to regulatory and commercial milestones.
3. Strategic Implications
These transactions bolster Lilly’s neuroscience and diabetes pipelines while embedding AI into early-stage research, reflecting a pivot toward digital drug discovery. The combined commitments represent a significant capital deployment that could accelerate future growth but may extend timelines before commercialization.