HomeIndustriesPharma Giant Eli Lilly Agrees to $3.2 Billion Acquisition of Morphic Holding

Pharma Giant Eli Lilly Agrees to $3.2 Billion Acquisition of Morphic Holding

Pharma giant Eli Lilly has struck a deal to acquire biopharmaceutical company Morphic Holding. The acquisition is worth $3.2 billion.

Morphic Holding, headquartered in Waltham, Massachusetts, develops therapeutics for the treatment of autoimmune, cardiovascular, and metabolic diseases, among others. The company’s most significant project at the moment is developing a “selective oral small molecule inhibitor” for inflammatory bowel disease (IBD) “that has the potential to improve outcomes and expand treatment options for patients.”

“We are eager to welcome Morphic colleagues to Lilly as this strategic transaction reinforces our commitment to developing new therapies in the field of gastroenterology, where Lilly has made significant investments to deliver first-in-class molecules for the benefit of patients,” Daniel Skovronsky, M.D., Ph.D., chief scientific officer of Lilly and President of Lilly Research Laboratories, said in a press release.

Lilly agreed to pay $57 a share in cash for Morphic Holding, which represents a 79% premium compared to the stock’s closing price of $31.84 on Friday. Boards of both companies have approved the sale, which is expected to close in the third quarter of 2024.

Since the news about the acquisition became public, Morphic Holding shares soared by close to 75%. The stock was 10% up year-to-date before the latest jump.

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