Eli Lilly and Company has entered into a definitive agreement to acquire Merida Biosciences, Inc., a privately held biotechnology company developing precision antibody-based therapies for autoimmune and allergic diseases. The deal is valued at up to $2.875 billion in cash, comprising an upfront payment plus additional payments tied to future development and commercial milestones.
Merida’s core technology is built around selectively breaking down disease-causing autoantibodies rather than broadly suppressing the immune system, an approach the company positions as a more targeted alternative to conventional immunosuppressive treatments used today.
Its lead candidate, MER511, is currently being evaluated in Phase 1 trials for Graves’ disease and thyroid eye disease, both driven by antibodies that overstimulate the thyroid gland. Graves’ disease affects close to 3 million people in the United States, and up to 40 percent of those patients may go on to develop thyroid eye disease, which can lead to serious complications including vision loss. Early clinical data reportedly showed meaningful reductions in the pathogenic antibodies alongside an encouraging safety profile.
Beyond its lead asset, Merida’s pipeline includes MER769, an early-stage program aimed at allergic conditions such as food allergy, asthma, and chronic hives, along with preliminary research into antibody-driven kidney disorders.
Lilly leadership described the acquisition as a natural extension of its immunology strategy, aimed at addressing the underlying biological drivers of disease rather than managing symptoms alone. Merida’s leadership framed the transaction as validation of years spent advancing the science from early concept to clinical-stage evidence.
The transaction remains subject to customary regulatory approvals and is expected to close in the fourth quarter of 2026. Centerview Partners is serving as exclusive financial advisor to Merida, while Ropes & Gray and Goodwin Procter are acting as legal counsel to Lilly and Merida, respectively.
Written By: Sayan Das
Graphics By: Pramit Hazra
