Eli Lilly to acquire Merida Biosciences for up to $2.875 billion

Eli Lilly and Company has entered into a definitive agreement to acquire Merida Biosciences for up to $2.875 billion in cash, including an upfront payment and contingent milestone payments.

Merida is developing biologics designed to selectively degrade disease-causing autoantibodies. Its approach aims to target the underlying cause of immune-mediated diseases rather than broadly suppressing the immune system.

Merida’s lead programme, MER511, is in Phase 1 development for Graves’ disease and thyroid eye disease (TED). The drug is designed to target thyroid-stimulating antibodies that drive these conditions.

Initial Phase 1 data showed that MER511 achieved robust reductions in pathogenic thyroid-stimulating antibodies, with an initial safety profile described by the company as favourable.

Merida also has MER769, a preclinical programme targeting diseases driven by IgE, including food allergy, asthma and chronic spontaneous urticaria. The company has additional early-stage programmes for kidney diseases, including membranous nephropathy, and other immune-mediated conditions.

Lilly said Merida’s technology could potentially be applied across a wider range of antibody-driven diseases.

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

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