Eli Lilly to Buy Morphic for $3.2B
Pharmaceutical maker Eli Lilly is set to buy Morphic Holding, paying $3.2B in cash, to include the latter's inflammatory bowel disease (IBD) drugs in its portfolio....
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Facts
- Pharmaceutical maker Eli Lilly is set to buy Morphic Holding, paying $3.2B in cash, to include the latter's inflammatory bowel disease (IBD) drugs in its portfolio.1
- Lilly, in a statement, said it's buying the Massachusetts-based biopharma firm, known for 'developing oral integrin therapies for treatment of serious chronic diseases,' because it could 'open up new possibilities for earlier intervention' in relation to several gastroenterological diseases.2
- Morphic's stock increased by 76.4% in premarket trading, on pace to match its Aug. 8, 2023, closing high. Lilly will reportedly pay $57 per share.3
- Morphic focuses on treatments for IBD, ulcerative colitis, and Crohn's disease. Lilly already makes drugs to treat severely active ulcerative colitis in adults.4
- Around 3.1M US adults have been diagnosed with IBD. IBD patients may be more prone to suffering from heart disease, lung disease, and cancer.5
Sources: 1Reuters, 2Eli Lilly and Company, 3Marketwatch, 4Wsj and 5Forbes.
Narratives
- Narrative A, as provided by Investors. This deal is a win-win for Morphic and the pharmaceutical industry as a whole. By acquiring Morphic, Lilly is showing it values its products and its focus on ingretin-based treatments for gastroenterological diseases. In addition, other companies developing ingretin-based treatments for various diseases are experiencing a boost in value.
- Narrative B, as provided by Bizjournals. This deal comes with risks for Lilly. Morphic has endured some disappointments over the past few years — including data that was less promising than expected from the testing of its lead drug, MORF-057. Other major pharmaceutical companies have severed ties with Morphic over various concerns. It remains to be seen if Lilly's takeover will produce positive results.
