Eli Lilly to Buy Merida Biosciences for Up to $2.875 Billion

Eli Lilly remains on a shopping spree, agreeing to pay up to $2.875 billion in cash for biotechnology company Merida Biosciences in a deal that bolsters the drugmaker’s immunology portfolio.

Eli Lilly on Monday said privately held Merida is advancing a new class of precision therapeutics for serious autoimmune and allergic diseases, with its lead program in Phase 1 development for Graves’ disease and thyroid eye disease.

The Merida deal continues a spate of acquisitions by the Indianapolis company, which is flush with cash from its market-leading weight-loss-drug franchise.

Eli Lilly last month struck a deal to buy mental-health-focused AtaiBeckley for an initial $2.8 billion and in late May agreed to acquire three vaccine developers in deals valued at up to nearly $4 billion combined.

Earlier in the year, the company struck deals each valued at less than $10 billion to buy cancer biotech Kelonia Therapeutics, blood-cancer focused Ajax Therapeutics, sleep-drug maker Centessa Pharmaceuticals, genetic-medicine biotechnology company Orna Therapeutics and biotech Ventyx Biosciences.

Eli Lilly said the Merida deal consideration includes an undisclosed upfront cash payment, along with contingent milestone payments.

Merida, based in Cambridge, Mass., launched last year with $121 million in Series A financing was co-led by Bain Capital Life Sciences, BVF Partners and Third Rock Ventures.

The transaction is slated to close by the end of the year.