dailyloe.com – Eli Lilly announced a major acquisition of Centessa Pharmaceuticals on Tuesday. The deal could be worth up to $7.8 billion. It marks a strategic push into sleep disorder treatments.
The US drugmaker aims to diversify beyond its successful metabolic portfolio. Centessa is a UK-based biopharmaceutical company. Its lead therapy targets narcolepsy and excessive daytime sleepiness.
Lilly offered $38 per share in cash for Centessa. This represents a 37.8% premium to the stock’s last closing price. Centessa’s US-listed shares surged 46% in premarket trading following the news.
The agreement includes a contingent value right worth about $1.5 billion. This additional $9 per share payment is non-transferable. It is tied to achieving certain future milestones.
Centessa’s pipeline includes mid-stage clinical programs. It also has preclinical treatments for neurological conditions. These assets could address a broader range of neuropsychiatric disorders.
Eli Lilly reached a trillion-dollar valuation last year. This success was driven by blockbuster weight-loss drugs. The company is now investing heavily to bolster other therapeutic areas.
This year, Lilly spent $2.4 billion to acquire Orna Therapeutics. It also invested over $1 billion in Ventyx Biosciences. The Centessa deal continues this aggressive expansion strategy.
The acquisition is pending regulatory and shareholder approvals. It highlights the high value of innovative neurology assets. The sleep disorder market represents a significant growth opportunity for large pharma.[]
Source: CNBC
