Eli Lilly to Acquire Merida Biosciences for Up to USD 2.88 Bn to Expand Autoimmune, Allergy Drug Pipeline

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 Ramirez-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.

Treatments for Graves' disease currently include antithyroid medications, radioactive ​iodine and surgery, while there are two FDA-approved medicines for thyroid eye disease: Amgen's Tepezza and Viridian Therapeutics' Lumvoa.

Merida's pipeline also includes MER769, an experimental treatment for food allergy, asthma and other allergic diseases, along with earlier-stage programs for kidney and other immune-mediated conditions.