Eli Lilly and Company has concluded the acquisition of biopharmaceutical company Morphic Holding at $57 per share, a strategic move aimed at bolstering its inflammatory bowel disease (IBD) portfolio.
The $3.2bn deal, initially agreed upon in July 2024, has now reached completion and will aid Lilly in enhancing treatment options for individuals suffering from IBD.
Morphic has been at the forefront of developing oral integrin treatments for serious chronic ailments.
Its asset, MORF-057, is a selective oral small molecule inhibitor of α4β7 integrin to treat IBD.
In October 2023, the US Food and Drug Administration (FDA) approved Lilly's Omvoh (mirikizumab-mrkz) infusion (300 mg/15 mL)/injection (100 mg/mL), to treat moderately to severely active ulcerative colitis in adults.
This asset is the first treatment approved for a type of IBD.
Citi served as the exclusive financial advisor to Lilly, with legal counsel provided by Kirkland & Ellis.
On Morphic's side, Centerview Partners acted as the exclusive financial advisor, with additional advice from Evercore Group, and Fenwick & West served as legal counsel.
Lilly chief scientific officer Daniel Skovronsky stated: “We are committed to exploring innovative approaches for immunologic diseases and believe Morphic's pipeline holds promise in improving outcomes and expanding treatment options for people with devastating conditions like IBD.
“Acquiring Morphic reinforces our growing capabilities in gastroenterology, building on the strong foundation of Omvoh, our first-in-class molecule already approved and launched around the world for ulcerative colitis and under regulatory review for Crohn's disease. Further, the acquisition allows Lilly to research potential combination treatments that could better serve people beyond what is possible with currently available medicines.”
This acquisition is a follow-up to Eli Lilly's recent establishment of the Lilly Seaport Innovation Center (LSC) in Boston's Seaport district, a hub dedicated to research and development in the pharmaceutical sector.
