Indianapolis-based Eli Lilly has signed a definitive agreement to acquire Cambridge, Mass.-based Merida Biosciences, a biotechnology company aimed at advancing therapeutics for serious autoimmune and allergic diseases, for up to $2.875 billion in cash.
The transaction includes an upfront payment and contingent milestone payments, according to an Aug. 31 news release. It is expected to close in the fourth quarter of 2026, pending regulatory approvals.
Merida is developing biologics designed to selectively degrade the pathogenic autoantibodies that cause autoimmune and allergic conditions, instead of broadly suppressing the immune system as many existing therapies do.
MER511, the company’s lead program, is in Phase 1 trials for Graves’ disease and thyroid eye disease. Initial data found the drug achieved robust reductions in pathogenic thyroid-stimulating antibodies with a favorable initial safety profile, the release said.
Merida also includes MER769, a preclinical program that targets food allergy, asthma and chronic spontaneous urticaria, along with earlier-stage programs in kidney diseases like membranous nephropathy.
“We’re building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects,” Francisco Ramírez-Valle, MD, PhD, senior vice president of Lilly immunology research and early clinical development, said in the release. “Merida’s lead program is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves’ disease and thyroid eye disease, while preserving normal immune function, with initial Phase 1 data already pointing to the potential for improved efficacy and safety.”
