jetcityimage/iStock Editorial via Getty Images In a bid to strengthen its immunology pipeline, Eli Lilly ( NYSE: LLY ) on Monday announced a deal to acquire biopharmaceutical company Morphic Holding ( NASDAQ: MORF ) for $57 a share in cash, or an aggregate of ~$3.2B, payable at closing. Shares of Morphic Holding ( MORF ) jumped around 77% premarket after the deal announcement.
Pursuant to the agreement, Eli Lilly ( LLY ) will initiate a tender offer to acquire all outstanding shares of Morphic ( MORF ). Upon closing of the tender offer, the drugmaker will acquire any MORF shares that were not tendered in the offer through a second-step merger at the same consideration. The transaction, approved by the boards of directors of both companies, is not subject to any financing condition, and is expected to close in the third quarter of 2024.
The purchase price payable at closing represents a premium of around 79.0% to the closing stock price on July 5, 2024. Deal expands Eli Lilly’s immunology portfolio with oral integrin therapies : Morphic is developing a portfolio of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular, and metabolic diseases, fibrosis, and cancer.
The company’s lead program (MORF-057) is a selective oral small molecule inhibitor of α4β7 integrin for the treatment of inflammatory bowel disease. This molecule is being tested in two Phase 2 studies for the treatment of ulcerative colitis and one Phase 2 .
