Lilly (LLY) Paying $2.9B for a Phase 1 Biotech Merida Biosciences
- Jonathan Poyer
- 2 hours ago
- 2 min read
In the news is an M&A deal worth paying attention to; a phase 1 drug:
From the article:
What makes Merida’s science genuinely interesting is the mechanism itself. Most existing treatments for autoimmune conditions work by broadly suppressing the immune system, which can control symptoms but often leaves patients more vulnerable to infection and other side effects. Merida is developing biologics engineered to do something more precise, selectively identifying and eliminating the specific malfunctioning antibodies, known as autoantibodies, that are actually causing a given disease, while leaving the rest of the immune system intact.
That seems like a large sum to be paying for a Phase 1 biotech. One question that comes to mind was whether there is recent precedence for this.
$2.9B is certainly a lot to pay, but not unprecedented (see below).
Capstan and Aliada were all-cash and therefore genuinely $2.1bn / $1.4bn of committed value; Merida, Scorpion, Verve and Kate are "up to" figures. Until Lilly discloses the upfront (likely in the Q4 10-Q / closing accounting treatment ), Merida is not yet demonstrably a larger cash commitment than Capstan.
Deal | Announced | Value | Stage at signing | Structure |
AbbVie / Capstan Therapeutics | Jun 2025 | $2.1bn | Ph1 in vivo CAR-T (CPTX2309), autoimmune | All cash, no milestones disclosed |
Lilly / Scorpion Therapeutics (PI3Kα program) | Jan 2025 | Up to $2.5bn | Ph1/2 STX-478, solid tumors | Upfront + regulatory/sales milestones; non-PI3Kα assets spun out |
AbbVie / Aliada Therapeutics | Oct 2024 | $1.4bn cash | Ph1 ALIA-1758, Alzheimer's | All cash upfront |
Lilly / Verve Therapeutics | Jun 2025 | Up to $1.3bn | Ph1b VERVE-102, PCSK9 base editing | Cash + CVR |
Novartis / Kate Therapeutics | Nov 2024 | Up to $1.1bn | Preclinical/early gene therapy, neuromuscular | Upfront + milestones |
AstraZeneca / EsoBiotec | Mar 2025 | Undisclosed in release text reviewed | In vivo cell therapy, "promising early clinical activity" | Acquisition, completed May 2025 |
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