Eli Lilly will acquire Merida Biosciences for up to $2.88 billion in cash to bolster its autoimmune and allergy franchise, the companies said on Monday. The deal, structured with an upfront payment and potential milestone payments, is slated to close in the fourth quarter of 2026.
Merida’s pipeline includes MER510, an early-stage antibody therapy designed to neutralize disease-causing antibodies in conditions such as Graves’ disease and thyroid eye disease. Early clinical data indicate the drug significantly reduces target antibodies. The company also has an experimental treatment for food allergies and asthma in development.
Eli Lilly will fund the acquisition using proceeds from its blockbuster obesity and diabetes medications, as part of a broader strategy to diversify revenue streams beyond its current cash cows. The company has accelerated its acquisition activity, with 2026 outlays already exceeding prior-year levels.
