Eli Lilly Acquires Morphic Holding for $3.2 BillionEli Lilly Acquires Morphic Holding for $3.2 Billion Eli Lilly and Company has acquired Morphic Holding, a clinical-stage biopharmaceutical company, for approximately $3.2 billion. The deal grants Lilly access to MORF-057, an investigational drug for the treatment of inflammatory bowel disease (IBD). Upon the announcement, Morphic’s stock experienced a significant surge in premarket trading, rising by 76% to $56.15. Lilly’s offer price represents a 79% premium over Morphic’s closing price prior to the announcement. MORF-057, Morphic’s lead drug, is currently being evaluated in two Phase 2 trials for ulcerative colitis and one Phase 2 trial for Crohn’s disease. IBD is a chronic condition characterized by inflammation of the gastrointestinal tract. The acquisition is expected to strengthen Lilly’s portfolio of immunology drugs, which includes treatments for rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis. The company plans to continue the development and clinical trials of MORF-057 to potentially bring it to market as a new treatment option for IBD patients. Sriparna Roy of Reuters contributed to the reporting of this news.
(Reuters) – Eli Lilly is acquiring Morphic Holding for $3.2 billion, the companies said on Monday, giving the U.S. pharmaceutical giant access to an experimental drug for inflammatory bowel disease.
Shares of drugmaker Morphic rose 76% to $56.15 in premarket trading after Lilly bid $57 a share, a 79% premium to the stock’s last closing price.
Morphic’s lead drug, MORF-057, is being evaluated in two Phase 2 trials in patients with ulcerative colitis and one Phase 2 trial in Crohn’s disease.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini Ganguli)
