Eli Lilly and Company has agreed to acquire Centessa Pharmaceuticals, a clinical-stage bio/pharmaceutical company focused on excessive daytime sleepiness and other neurological conditions, in a deal worth up to $7.8 billion ($6.3 billion upfront and $1.5 billion in milestone payments). 

Centessa is advancing a pipeline of orexin receptor 2 (OX2R) agonists designed to address the neurobiological system critical to the sleep-wake cycle to treat excessive daytime sleepiness and disorders of impaired wakefulness. Its lead investigational candidate, cleminorexton, is in Phase IIa clinical studies across type 1, narcolepsy type 2, and idiopathic hypersomnia. Centessa’s OX2R agonist portfolio includes additional clinical and preclinical-stage assets with potential utility across a broader range of neurological, neurodegenerative, and neuropsychiatric conditions.  

Under the agreement, Lilly will acquire all of the issued and to-be-issued share capital of Centessa for $38.00 in cash per share plus one non-transferrable contingent value right (CVR) that entitles the holder to receive up to an aggregate of $9.00 subject to the achievement of three milestones, for total potential aggregate per share consideration of up to $47.00. The upfront cash consideration represents an aggregate equity value of approximately $6.3 billion, and the CVR represents an additional potential aggregate equity value of approximately $1.5 billion. 

The transaction, which will be effectuated by way of a scheme of arrangement under the laws of England and Wales, is expected to close in the third quarter of 2026, subject to approval by Centessa shareholders, sanction by the High Court of Justice of England and Wales, and satisfaction of other customary closing conditions, including regulatory approvals. 

Source: Eli Lilly and Company