Eli Lilly agreed to acquire Merida Biosciences for up to $2.875 billion in cash, adding a pipeline of precision immunology therapies led by MER511 for Graves' disease and thyroid eye disease. The deal is Lilly's 13th acquisition in 2026 as it expands beyond its weight-loss franchise.
Eli Lilly agreed to pay up to $2.875 billion in cash for Merida Biosciences, a biotech developing precision therapies for autoimmune and allergic diseases.
"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects," Francisco Ramírez-Valle, senior vice president of Lilly immunology research and early clinical development, said.
Merida's lead program, MER511, is in Phase 1 development for Graves' disease and thyroid eye disease, conditions driven by autoantibodies that activate the thyroid-stimulating hormone receptor. Initial Phase 1 data show strong reductions in pathogenic thyroid-stimulating antibodies with a favorable safety profile. Graves' disease affects approximately 3 million people in the U.S., and 25 to 40 percent of patients develop thyroid eye disease, which can cause pain, disfigurement and, in severe cases, vision loss. Merida is also developing MER769 for food allergies, asthma and chronic spontaneous urticaria, along with earlier-stage programs in kidney diseases such as membranous nephropathy.
The deal extends Lilly's aggressive acquisition streak — its 13th in 2026 — as the drugmaker deploys cash generated by its tirzepatide-based therapies Mounjaro and Zepbound. The transaction includes an undisclosed upfront payment plus contingent milestone payments and is expected to close in the fourth quarter.
Cambridge, Massachusetts-based Merida launched last year with $121 million in Series A financing co-led by Bain Capital Life Sciences, BVF Partners and Third Rock Ventures. The company's platform uses Fc-region protein engineering to generate biologics that bind to harmful autoantibodies and mark them for degradation by the liver, while preserving normal immune function.
Lilly's other 2026 acquisitions include mental-health-focused AtaiBeckley for an initial $2.8 billion, three vaccine developers in deals valued at up to nearly $4 billion combined, and cancer biotech Kelonia Therapeutics, blood-cancer focused Ajax Therapeutics, sleep-drug maker Centessa Pharmaceuticals, genetic-medicine company Orna Therapeutics and biotech Ventyx Biosciences.
Separately, Lilly announced that combining its inflammation treatment Taltz with Zepbound delivered lasting improvements in adults with psoriasis or psoriatic arthritis who were also obese in two Phase 3b trials. After 52 weeks, 30.6 percent of patients with psoriasis receiving both drugs achieved complete skin clearance and lost at least 10 percent of their body weight, compared with 4.4 percent on Taltz alone.
LLY shares edged marginally lower in pre-market trading and were on track to post a fifth straight session of declines, though the stock has generally been on a positive run this year.
The acquisition gives Lilly a platform with potential application across a broad range of antibody-driven diseases beyond its lead program. Investors will watch for regulatory clearance and the deal's closing in the fourth quarter, along with further Phase 1 data from MER511.
This article is for informational purposes only and does not constitute investment advice.
