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Key Takeaways
- Eli Lilly said it would buy Morphic for roughly $3.2 billion or $57 per share, a nearly 80% premium to Friday’s closing price.
- Morphic is developing a treatment for inflammatory bowel disease.
- The deal is expected to close in the third quarter of 2024.
Eli Lilly ( LLY ) agreed to buy biopharmaceutical firm Morphic ( MORF ) at a significant premium, sending shares of Morphic skyrocketing Monday.
Eli Lilly said it will pay roughly $3.2 billion for the acquisition , or $57 per share, nearly 80% higher than Morphic’s closing price on Friday. Shares of Morphic surged over 75% in early trading Monday. Eli Lilly shares were little changed.
Eli Lilly To Gain Morphic Drugs in Development
Morphic’s flagship drug in development for inflammatory bowel disease is known as MORF-057. The treatment is currently involved in a Phase 2 study for treatment of ulcerative colitis and Crohn’s disease.
The Waltham, Mass.-based company is also developing molecules intended to treat autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases, and cancer.
“Oral therapies could open up new possibilities for earlier intervention in diseases like ulcerative colitis, and also provide the potential for combination therapy to help patients with more severe disease,” Eli Lilly Chief Scientific Officer Daniel Skovronsky said in a statement.
The transaction has been approved by the boards of both companies. It is expected to close in the third quarter of 2024.