Lilly agrees to acquire IBD for $3.2 billion

The acquisition, valued at approximately $3.2 billion, is intended to support the development of oral small-molecule integrin therapies for conditions such as ulcerative colitis.

Eli Lilly and Company has signed an agreement to develop a first-in-class oral integrin therapy as a treatment for serious chronic diseases through the acquisition of Morphic Holding, Inc.

Under the agreement, Lilly will acquire all of Morphic’s outstanding shares for approximately $3.2 billion.

MORF-057 is a selective oral small molecule inhibitor of the α4β7 integrin for patients with inflammatory bowel disease (IBD), being developed as Morphic’s lead program. The molecule is currently in two phase II trials for ulcerative colitis (UC) and one phase II trial evaluating patients with Crohn’s disease, according to Morphic.

About the takeover agreement

“Oral therapies could open up new avenues for earlier intervention in diseases such as ulcerative colitis, as well as the potential for combination therapy to help patients with more severe disease.”

“Oral therapies can open up new avenues for earlier intervention in diseases like ulcerative colitis, as well as provide the potential for combination therapy to help patients with more severe disease,” explained Daniel Skovronsky, PhD, Eli Lilly’s Chief Scientific Officer and President of Lilly Research Laboratories and President of Lilly Immunology.

The oral small molecule MORF-057 has “the potential to be well-tolerated and effective, potentially opening new avenues for the treatment of IBD… we look forward to the future of MORF-057 and other integrin therapeutics under Lilly’s guidance,” said Praveen Tipirneni, Ph.D., CEO of Morphic Therapeutic.

Both parties confirmed that the acquisition agreement is not subject to any financing conditions. The transaction is expected to close in Q3 2024, subject to customary closing conditions.

Developing drug development strategies

Eli Lilly and Company announced last month that it had named a new executive vice president of global quality. The new hire will begin July 22. At the time of the announcement, David Ricks, chairman and CEO of Eli Lilly, said, “With more than 25 years of experience and a proven track record of strategic quality initiatives across the product lifecycle, Melissa (Seymour) will continue to advance our culture of quality that has been integral to our success in bringing innovative medicines to people around the world.”