Lilly to Acquire Centessa for Up to $7.8B

Eli Lilly has agreed to acquire Centessa Pharmaceuticals in a deal valued at up to $7.8 billion, according to reports from Reuters, STAT News, and CNBC. The acquisition aims to expand Lilly's portfolio beyond metabolic treatments into sleep disorders and neurological conditions.

The UK-based Centessa is developing treatments for excessive daytime sleepiness and other neurological conditions. Its lead therapy is currently in mid-stage studies for narcolepsy. Under the terms of the deal, Lilly will pay $38 per share in cash, representing a 37.8% premium to Centessa's last closing price. The agreement also includes one non-transferable contingent value right (CVR) of about $9 per share, worth approximately $1.5 billion if regulatory approvals are achieved.

The transaction is expected to close in the third quarter of 2024, pending regulatory approval. Centessa's pipeline includes additional clinical and preclinical-stage treatments with potential applications for a broader range of neurological and neuropsychiatric conditions. According to CNBC, Lilly CEO Dave Ricks expressed enthusiasm about the deal, highlighting its potential impact on millions suffering from neuroscience conditions.

This acquisition follows Lilly's recent investments in expanding its pipeline. Earlier this year, the company spent $2.4 billion to acquire Orna Therapeutics and over $1 billion for Ventyx Biosciences. The deal comes as Lilly continues to diversify its portfolio, leveraging the success of its blockbuster weight-loss treatments.