Lilly to Buy This Autoimmune Drugmaker for $2.9 Billion in Cash. What It Means for the Stock. -- Barrons.com

By Mackenzie Tatananni

Eli Lilly continued its acquisition spree on Monday as the world's largest drugmaker agreed to pay roughly $2.9 billion in cash for a biotechnology company developing treatments for autoimmune diseases.

Privately held Merida Biosciences is creating biologic drugs that target specific, harmful antibodies. Lilly will acquire the rights to Merida's lead asset, MER511, which is currently in early clinical development for Graves' disease and thyroid eye disease.

The deal consideration includes an upfront cash payment and contingent milestone payments, Lilly said.

While investor attention largely has centered on Lilly's ever-expanding cancer portfolio, the Merida deal marks the drugmaker's latest move to bolster its immunology pipeline through strategic acquisitions. In February, Lilly agreed to buy Orna Therapeutics, a developer of therapies for B-cell-driven autoimmune diseases, in a $2.4 billion cash deal.

Lilly shares slipped 0.3% in premarket trading Monday. Futures tracking the benchmark S&P 500 were down nearly as much.

Oncology has remained a central focus of Lilly's dealmaking strategy this year. The recent acquisitions of Kelonia Therapeutics and Ajax Therapeutics, both of which closed in the second quarter, built on the company's existing blood cancer franchise while aiming to close the gaps in current standard-of-care treatments.

In a bid to enter a new therapeutic space, Lilly completed its largest transaction of the year in late June, acquiring Centessa Pharmaceuticals for $7.8 billion. The deal brings Centessa's portfolio of treatments for neurological and sleep-wake disorders, including narcolepsy, under Lilly's umbrella.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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August 31, 2026 08:10 ET (12:10 GMT)