Eli Lilly and Company and Merida Biosciences announced a definitive agreement under which Lilly will acquire Merida. The transaction is valued at up to 2.875 billion dollars in cash including upfront and contingent milestone payments. The acquisition strengthens Lilly's immunology capabilities and its ability to target the root causes of antibody-driven autoimmune and allergic diseases.
A Precision Approach to Autoimmune Disease
Merida has built an antibody engineering platform designed to enable precise and durable removal of disease-causing antibodies while preserving normal immune function. This approach differs from many existing therapies that broadly suppress the immune system. Lilly views the platform as a way to elevate the standard of care for immune-mediated conditions with high unmet need.
Clinical Data in Graves' Disease and Thyroid Eye Disease
Merida's lead clinical candidate, MER511, is currently in Phase 1 development for Graves' disease and thyroid eye disease. Initial Phase 1 data showed robust reductions in pathogenic thyroid-stimulating antibodies with a favorable initial safety profile. The conditions are driven by thyroid-stimulating immunoglobulins that activate the thyroid-stimulating hormone receptor and promote disease activity.
Significant Patient Need
Graves' disease affects approximately three million people in the United States and is associated with elevated cardiovascular risk and mortality. Between 25 and 40 percent of people with Graves' disease go on to develop thyroid eye disease, which can cause pain, disfigurement and vision loss in severe cases. Approved treatments for both conditions exist, but none directly target the autoantibodies that cause them.
Broad Pipeline Potential
Beyond the lead program, Merida is developing MER769 in preclinical studies for food allergy, asthma, chronic spontaneous urticaria and other diseases triggered by the antibody responsible for allergic reactions. The company also has earlier-stage programs focused on kidney diseases such as membranous nephropathy. The platform's broad applicability is central to Lilly's interest in the acquisition.
Financial Terms and Closing Timeline
Under the agreement, Lilly will acquire Merida and pay up to 2.875 billion dollars in cash. The total consideration includes an upfront payment and contingent milestone payments. The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2026.
Leadership Commentary
Francisco Ramírez-Valle, senior vice president of Lilly immunology research and early clinical development, said Merida's lead program is designed to selectively and directly eliminate the autoantibodies causing Graves' disease and thyroid eye disease while preserving normal immune function. Adam Townsend, chief executive officer of Merida, said the company was founded to fundamentally change how autoimmune and allergic diseases are treated. He credited the team and scientific leadership for advancing the platform from concept to clinical data.
Advisors
Ropes and Gray LLP is acting as legal counsel to Lilly. Centerview Partners LLC is acting as exclusive financial advisor to Merida, and Goodwin Procter LLP is acting as legal counsel to Merida. Lilly will determine the accounting treatment of the transaction in accordance with Generally Accepted Accounting Principles upon closing.
The acquisition would strengthen Lilly's immunology capabilities and its opportunity to elevate the standard of care for immune-mediated conditions with high unmet need. If completed, the deal would add a novel antibody-engineering platform that may extend across multiple disease areas. The companies expect to close the transaction later this year, positioning the combined organization to pursue new approaches for patients with serious autoimmune and allergic diseases.