Eli Lilly to buy Merida Biosciences in deal worth up to $2.88 billion

Adds details on Merida in paragraphs 3 and 4

Aug 31 (Reuters) - Eli Lilly LLY.N said on Monday it would acquire privately held Merida Biosciences for up to $2.88 billion in cash, as it seeks to expand its pipeline of potential treatments for immunity-related and allergic diseases.

Lilly has been on an acquisition spree, boosted by the booming demand for its obesity drugs. Its deal spending in 2026 has outpaced that in the prior years.

Merida is developing medicines to selectively target antibodies that cause a range of immunity-related conditions.

Its lead drug candidate, MER511, is in the early stage of development for autoimmune disorders such as Graves' disease and thyroid eye disease.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Leroy Leo)

((Padmanabhan.Ananthan@thomsonreuters.com;))