Eli Lilly & Co. has reached an agreement to acquire the U.S.-based biopharmaceutical company Morphic Holding Inc. in a transaction valued at approximately $3.2 billion. The acquisition aims to bolster Lilly’s portfolio with Morphic’s experimental therapies, particularly in the treatment of inflammatory bowel disease (IBD) and other chronic conditions.
The deal stipulates that Lilly will purchase Morphic shares at $57 each, reflecting a 79% premium over Morphic’s closing stock price as of the previous Friday. The board of directors at Morphic has endorsed the offer and encourages shareholders to tender their shares.
Morphic specializes in developing selective oral small molecule inhibitors for inflammatory bowel disease, with their primary experimental therapy currently undergoing mid-stage clinical trials for ulcerative colitis. For more information on the acquisition, visit Bloomberg Law here.