Eli Lilly to Acquire Morphic Holding for $3.2 Billion to Expand Immunology Pipeline

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Eli Lilly and Company is set to acquire Morphic Holding, Inc. (NASDAQ: MORF), a biopharmaceutical company based in Waltham, MA, known for developing oral integrin therapies for serious chronic diseases. Lilly will commence a tender offer to acquire all outstanding shares of Morphic for $57 per share in cash, totaling approximately $3.2 billion. The transaction has been approved by the boards of directors of both companies.

The acquisition will enhance Lilly’s immunology pipeline by incorporating Morphic’s portfolio of oral integrin therapies. Morphic, led by CEO Praveen Tipirneni, focuses on developing treatments for autoimmune, cardiovascular, and metabolic diseases, fibrosis, and cancer.

Morphic’s lead program, MORF-057, is a selective oral small molecule inhibitor of α4β7 integrin aimed at treating inflammatory bowel disease (IBD). This molecule has the potential to improve outcomes and expand treatment options for patients with IBD and is currently being evaluated in two Phase 2 studies in ulcerative colitis and one Phase 2 study in Crohn’s disease. Additionally, Morphic is developing a preclinical pipeline of other molecules targeting autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases, and cancer.

The acquisition aligns with Lilly’s strategic focus on expanding its immunology capabilities and advancing innovative treatments for chronic diseases.

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