Eli Lilly announced on Tuesday its plans to acquire three early- and mid-stage vaccine developers—Curevo, LimmaTech Biologics, and Vaccine Company—for a combined value of nearly $4 billion. This move signals the pharmaceutical giant's push into infectious disease prevention, according to Reuters. The acquisitions are part of Lilly's broader strategy to expand beyond its booming GLP-1 obesity and diabetes drugs.
Key Takeaways
Eli Lilly announced plans to acquire three vaccine developers—Curevo, LimmaTech Biologics, and Vaccine Company—for a combined value of nearly $4 billion. The acquisitions aim to expand Lilly's portfolio into infectious disease prevention.
- Eli Lilly acquires Curevo for up to $1.5 billion, focusing on shingles vaccines
- LimmaTech Biologics acquired for up to $780 million, targeting bacterial pathogens
- Vaccine Company purchased for up to $1.55 billion, developing Epstein-Barr virus vaccine
- Lilly shares rose 0.9% following the announcement
The deals come as Lilly continues an acquisition spree, having recently picked up companies working on cancer, autoimmune diseases, and sleep disorders. Curevo, which is developing a vaccine for the prevention of shingles in adults, could receive up to $1.5 billion in cash, inclusive of an upfront payment and subsequent milestone payments. LimmaTech Biologics, focusing on vaccines against bacterial pathogens like Neisseria gonorrhoeae and chlamydia trachomatis, is being acquired for up to $780 million.
The Vaccine Company, developing a vaccine against the Epstein-Barr virus using In Vivo Nanoparticle (IVN) technologies, will be purchased for up to $1.55 billion. These acquisitions reflect Lilly's strategy to prevent disease at its source rather than treat its consequences, as stated by Daniel M. Skovronsky, chief scientific and product officer and president of Lilly.
Lilly's shares rose 0.9% shortly after the market opened following the announcement. The company has seen strong demand for its flagship products Zepbound and Mounjaro, with first-quarter revenue in the U.S. for each product coming in at $4.16 billion and $4.2 billion respectively. As it faces fierce competition from Novo Nordisk, Lilly has rolled out its newly approved GLP-1 obesity pill Foundayo in the second quarter.
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