Lilly to buy Merida Biosciences for up to $2.88 billion in autoimmune drug push

Aug. 31 (Reuters) - Eli Lilly said on Monday it would acquire privately held Merida Biosciences for up to $2.88 billion in cash, as it seeks to expand its pipeline of potential treatments for immunity-related and allergic diseases.

Lilly has been on an acquisition spree following windfall profits from the success of its obesity drugs. Its deal spending in 2026 has outpaced that in the prior years, as it aims to expand beyond obesity and diabetes.

"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects," said Francisco Ramírez-Valle, senior vice president, Lilly immunology research and early clinical development. "Merida's lead program is designed to do exactly that."

Lilly said the deal for Merida includes an upfront amount and payments contingent on meeting certain milestones, but did not disclose the details. The company expects the transaction to close in the fourth quarter.

Merida is developing medicines to selectively target antibodies that cause a range of immunity-related conditions.

Its lead drug candidate, MER511, is in the early stage of development for autoimmune disorders such as Graves' disease and thyroid eye disease.

Graves' disease causes an overactive thyroid gland to produce excess hormone, while thyroid eye disease is a condition that can cause inflammation, eye bulging, double vision and vision impairment.

Lilly said initial data showed MER511 substantially lowered the thyroid-stimulating antibodies linked to the diseases, while showing a favorable initial safety profile.