Eli Lilly agrees to acquire Merida Biosciences for up to $2.88 billion in cash

Summary

• The deal terms: Eli Lilly and Company has agreed to acquire privately held Merida Biosciences for up to $2.875 billion in cash, comprising an upfront payment and contingent milestone payments.
• Precision antibody degradation: The acquisition adds Merida’s antibody-engineering platform, which is designed to selectively eliminate disease-causing antibodies while preserving normal immune function.
• Lead clinical programme: Merida’s lead candidate, MER511, is in Phase 1 development for Graves’ disease and thyroid eye disease (TED). Its pipeline also includes MER769, a preclinical programme targeting antibody-driven allergic diseases.

INDIANAPOLIS and CAMBRIDGE, Mass., August 31, 2026 — Eli Lilly and Company has agreed to acquire privately held biotechnology company Merida Biosciences, Inc. for up to $2.875 billion in cash, expanding Lilly’s pipeline of potential treatments for serious autoimmune and allergic diseases.

Under the terms of the agreement, Lilly will pay an upfront cash amount along with contingent milestone payments tied to the development and potential commercial progress of Merida’s programmes. The companies expect the transaction to close in the fourth quarter of 2026, subject to customary closing conditions, including regulatory approvals.

The acquisition gives Lilly access to Merida’s precision therapeutics platform, which is designed to selectively target and eliminate pathogenic autoantibodies involved in immune-mediated diseases rather than broadly suppressing immune activity.

A targeted approach to disease-causing antibodies

Merida is developing biologics designed to selectively remove antibodies that contribute directly to disease while preserving normal immune function.

Its lead programme, MER511, is currently being evaluated in a Phase 1 study for Graves’ disease and is also being developed for thyroid eye disease (TED). Both conditions are associated with thyroid-stimulating immunoglobulins, or autoantibodies, that activate the thyroid-stimulating hormone receptor.

According to Lilly, initial Phase 1 data showed robust reductions in pathogenic thyroid-stimulating antibodies, together with a favourable initial safety profile. The results remain early-stage clinical evidence and will require further evaluation as development progresses.

Merida’s approach is intended to address the underlying antibody drivers of disease rather than simply reducing downstream symptoms. The company says its platform could potentially be applied across a broader range of antibody-mediated autoimmune and allergic conditions.

Expanding into allergic diseases

The acquisition also adds MER769, a preclinical programme focused on IgE-mediated allergic diseases.

Merida is evaluating the programme in areas including food allergy, asthma and chronic spontaneous urticaria, while the company’s broader pipeline includes earlier-stage programmes for immune-mediated diseases such as membranous nephropathy.

The platform is based on advances in protein engineering and immunology and is intended to selectively and durably eliminate pathogenic antibodies and, in some programmes, their B-cell sources.

Lilly expands its immunology pipeline

The transaction strengthens Lilly’s presence in immune-mediated diseases by adding an early-stage platform with potential applications across autoimmune and allergic conditions.

Francisco Ramírez-Valle, senior vice president of immunology research and early clinical development at Lilly, said the company sees potential for Merida’s approach to be applied across a broad range of antibody-driven diseases. Lilly said the acquisition will give Merida’s technology additional resources to advance its clinical development.

The deal also reflects the strategic value large pharmaceutical companies are placing on emerging biotechnology platforms that could produce new treatment approaches for diseases with significant unmet medical needs.

Transaction advisers

Ropes & Gray LLP is serving as legal counsel to Lilly. Centerview Partners LLC is acting as exclusive financial adviser to Merida, while Goodwin Procter LLP is serving as Merida’s legal counsel.

Why this matters

• New immunology platform: Lilly gains access to a precision antibody-degradation technology aimed at diseases driven by pathogenic autoantibodies.
• Clinical-stage asset: MER511 gives Lilly a Phase 1 programme focused on Graves’ disease and thyroid eye disease.
• Broader pipeline potential: Merida’s platform could potentially be applied to additional autoimmune and allergic diseases beyond the lead programme.
• Risk-sharing deal structure: The acquisition combines upfront cash with contingent milestone payments, allowing a portion of the total consideration to depend on future development and commercial milestones.
• Early-stage opportunity: The key programmes remain at an early stage of development, meaning their eventual efficacy, safety and commercial potential have yet to be established.

FAQs

Q1: What is the value of the Eli Lilly–Merida Biosciences deal?

Lilly will acquire Merida for up to $2.875 billion in cash, including an upfront payment and contingent milestone payments.

Q2: What is Merida Biosciences developing?

Merida is developing biologics designed to selectively eliminate pathogenic antibodies involved in autoimmune and allergic diseases while preserving normal immune function.

Q3: What is MER511?

MER511 is Merida’s lead clinical programme. It is in Phase 1 development for Graves’ disease and thyroid eye disease, targeting the pathogenic thyroid-stimulating antibodies associated with these conditions.

Q4: What is MER769?

MER769 is a preclinical programme focused on IgE-mediated allergic diseases, including food allergy, asthma and chronic spontaneous urticaria.

Q5: When is the acquisition expected to close?

The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.