Eli Lilly is moving deeper into precision immunology, agreeing to acquire biotechnology company Merida Biosciences for up to $2.875 billion in cash as it seeks new treatments for serious autoimmune and allergic diseases.
The deal gives Lilly access to Merida's antibody-engineering technology, which is designed to selectively eliminate disease-causing autoantibodies while preserving normal immune function.
Merida's lead drug candidate, MER511, is already being tested in a Phase 1 trial for Graves' disease and thyroid eye disease (TED). Initial data showed robust reductions in pathogenic thyroid-stimulating antibodies and what the companies described as a favorable initial safety profile.
The approach could mark a shift from broadly suppressing the immune system to directly targeting the antibodies driving disease.
Graves' disease affects roughly 3 million people in the US and can increase cardiovascular risk and mortality. An estimated 25% to 40% of patients develop TED, which can cause pain, disfigurement and, in severe cases, vision loss.
Although treatments exist for both conditions, none directly targets the autoantibodies responsible for driving them.
Lilly sees potential well beyond Graves' disease and TED. Merida's pipeline includes MER769, a preclinical program targeting food allergy, asthma and chronic spontaneous urticaria, as well as earlier-stage programs for kidney diseases including membranous nephropathy.
"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects. 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," said Francisco Ramírez-Valle, senior vice president, Lilly immunology research and early clinical development.
"We see potential to apply this precision approach across a broad range of antibody-driven diseases, and we look forward to advancing this novel technology working with the Merida team."
For Merida, the acquisition provides the resources of a global pharmaceutical company to advance its technology and pipeline.
"Merida was founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly.
"Under our CSO and founder Dario Gutierrez's scientific leadership, our team has advanced that idea from concept to clinical data, and what we've seen so far reinforces our conviction that this approach can make a meaningful difference for patients," said Adam Townsend, chief executive officer of Merida.
"Today's announcement reflects the hard work of the entire Merida team, and joining Lilly gives our science the resources and commitment to realize its potential for patients with immune-mediated conditions."
Under the agreement, Lilly will pay up to $2.875 billion, including an upfront payment and contingent milestone payments.
The acquisition underscores Lilly's broader push to expand its immunology portfolio and develop therapies aimed at the underlying causes of immune-mediated diseases rather than simply controlling their symptoms.
