Eli Lilly (NYSE: LLY) has announced a definitive agreement to acquire Merida Biosciences, a clinical-stage biotech company, in an all-cash transaction valued at up to $2.875 billion. The deal includes an upfront payment and contingent payments based on development and regulatory milestones, though specifics were not disclosed.
The acquisition, expected to close in the fourth quarter of 2026, will enhance Lilly’s pipeline with Merida’s antibody-engineering platform and lead drug MER511, currently in phase I development for Graves’ disease and thyroid eye disease. Additionally, the deal will incorporate preclinical candidates targeting diseases such as food allergies, asthma, and kidney conditions.
This move reflects Lilly’s strategy to diversify its pipeline amid strong revenue growth from its GLP-1 drugs. The Merida acquisition is part of a series of initiatives in 2026, marking Lilly’s aggressive pursuit of a broader range of therapeutic areas.
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