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Eli Lilly agrees to acquire Merida Biosciences

Eli Lilly agrees to acquire Merida Biosciences

Money Moves

Up to $2.875 billion for a biotech whose drugs destroy disease-causing antibodies instead of suppressing the immune system

September 1st, 2026: Lilly agrees to acquire Merida Biosciences for up to $2.875 billion

Overview

Updated Sep 1

Eli Lilly agreed to buy Merida Biosciences for up to $2.875 billion. The deal adds a platform that destroys the specific antibodies driving autoimmune disease instead of broadly suppressing the immune system. Merida's lead drug, MER511, is in early human testing for Graves' disease and thyroid eye disease.

The purchase is Lilly's thirteenth acquisition this year, part of a push to invest profits from its weight-loss drugs in new therapeutic areas. Merida launched about 17 months ago with $121 million in funding. The price includes milestone payments tied to future results, a structure that reflects the risk of buying a drug still in Phase 1.

Why it matters

If MER511 works, millions of Graves' disease patients could get a treatment that targets the cause of their illness rather than just managing symptoms.

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Key Indicators

$2.875B
Maximum deal value
Total potential consideration, including an undisclosed upfront payment and contingent milestones.
13
Lilly acquisitions in 2026
Lilly's takeouts announced this year, with Merida the latest.
3M
People with Graves' disease in the US
About 25–40% of Graves' patients develop thyroid eye disease.
$121M
Merida's launch funding
Funding Merida raised at launch, about 17 months before the deal.
Phase 1
MER511 development stage
Lead candidate is in early human trials for Graves' disease and thyroid eye disease.

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Timeline

March 2025 September 2026

4 events Latest: September 1st, 2026 · 1 week ago
Tap a bar to jump to that date
  1. Lilly agrees to acquire Merida Biosciences for up to $2.875 billion

    Latest M&A

    Lilly announces a definitive agreement to buy Merida, adding MER511, a Phase 1 drug for Graves' disease and thyroid eye disease. Closing is expected in Q4 2026.

  2. Lilly CEO touts acquisition strategy

    Statement

    David Ricks tells investors Lilly is expanding into emerging therapeutic areas through business development.

  3. Lilly announces three vaccine acquisitions

    M&A

    Lilly agrees to buy Curevo, LimmaTech Biologics, and the Vaccine Company as it expands its pipeline.

  4. Merida launches with $121 million

    Funding

    The Cambridge, Massachusetts biotech launches with backing for biologics that selectively degrade disease-causing antibodies.

Scenarios

1

Lilly closes Merida acquisition in Q4 2026

Likely Resolves by Jan 31, 2027

Discussed by: Lilly and Merida in their joint announcement, which says closing is expected in Q4 2026; CNBC and Axios deal coverage

Lilly clears the regulatory review and closes the deal in the fourth quarter of 2026, as the companies announced. The close requires only customary approvals, and nothing in the public record suggests a hurdle. After closing, Lilly folds Merida's team into its immunology division and decides how to run the NEXUS Phase 1 study.

2

Antitrust review delays Merida deal into 2027

Unlikely Resolves by Q2 2027

Discussed by: Not widely predicted; deal coverage in Axios and BioCentury notes the customary regulatory conditions, and the FTC's Amgen-Horizon challenge shows regulators can intervene in pharma M&A

The Federal Trade Commission or the Department of Justice asks for more information on the transaction, delaying the expected close into 2027. Lilly has announced thirteen takeouts this year, and regulators may examine how the deals affect competition in immunology markets. A second request would be unusual for a Phase 1 asset but not unprecedented, given the FTC's recent record on pharma deals.

3

MER511 advances to Phase 2 by end of 2027

Uncertain Resolves by End of 2027

Discussed by: Merida and Lilly's initial Phase 1 data, which showed robust antibody reductions; PharmExec and Business News Today coverage of the clinical risk

The NEXUS Phase 1 study completes and Lilly advances MER511 into Phase 2 testing for Graves' disease or thyroid eye disease. Initial data already showed the drug lowered thyroid-stimulating antibodies with a favorable safety profile, the basis for the deal's clinical promise. A Phase 2 start by the end of 2027 would validate the deal's premise; failure or delay would cap its value.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

January 2019 – November 2019

Bristol Myers Squibb acquires Celgene (2019)

Bristol Myers Squibb agreed in January 2019 to buy Celgene for $74 billion, betting on experimental cancer and immunology drugs to replace revenue from the blood cancer drug Revlimid as its patents expired. The deal closed in November 2019 after a fight with activist investor Starboard Value, which argued the price was too high.

Then

BMS absorbed Celgene's programs, including the immunology drug ozanimod, and faced shareholder pressure over the price.

Now

Some Celgene pipeline bets paid off and others disappointed, illustrating the risk of buying early-stage science at a premium.

Why this matters now

Like BMS-Celgene, the Merida deal is a bet that experimental science can extend a pharma giant's growth. Phase 1 drugs often fail, which is why the price is built around milestones.

January 2019 – December 2019

Eli Lilly acquires Loxo Oncology (2019)

Lilly agreed in January 2019 to buy Loxo Oncology for about $8 billion, paying for a platform of targeted cancer drugs, including a treatment for tumors with specific genetic mutations. The deal closed during 2019, and Lilly folded Loxo's team and pipeline into its oncology division.

Then

Loxo's lead drug, selpercatinib, won FDA approval in 2020 and became the marketed product Retevmo.

Now

The deal became a template for Lilly's platform-buying strategy, which it continues with Merida.

Why this matters now

Lilly has a track record of buying early-stage platform companies and turning their science into products. The Merida deal follows the same playbook in immunology.

December 2022 – October 2023

Amgen acquires Horizon Therapeutics (2022–2023)

Amgen agreed in December 2022 to buy Horizon for $27.8 billion, paying a premium for Tepezza, the leading thyroid eye disease drug, and Krystexxa for gout. The Federal Trade Commission sued to block the deal in May 2023, arguing Amgen could use rebate contracts to keep rivals out. The two sides settled in September 2023, and Amgen closed the deal the next month.

Then

Amgen closed the acquisition after agreeing to a consent order restricting how it used rebate contracts.

Now

Tepezza became a top product for Amgen, and the FTC's challenge signaled closer antitrust scrutiny of pharma M&A.

Why this matters now

Tepezza is the existing standard of care for thyroid eye disease, the condition Merida's MER511 would challenge. The deal also shows pharma acquisitions can draw antitrust scrutiny even after approval.

Sources

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