Eli Lilly and Company has agreed to acquire Merida Biosciences, a Cambridge, Massachusetts-based clinical-stage bio/pharmaceutical company advancing precision therapeutics for autoimmune and allergic diseases, for $2.875 billion.  

Merida is developing biologics engineered to selectively degrade pathogenic autoantibodies, the disease-causing agents behind a range of immune-mediated conditions. The precision degradation approach is intended to address the biological cause of these diseases rather than broadly suppressing the immune system, as other therapies do, according to information from the companies.  

Merida’s lead program, MER511, is in Phase I development for Graves’ disease and thyroid eye disease, conditions driven by thyroid-stimulating immunoglobulins, which are autoantibodies that activate the thyroid-stimulating hormone receptor. The company’s pipeline also includes MER769, a preclinical program focused on food allergy, asthma, chronic spontaneous urticaria (i.e., hives) and other diseases driven by the antibody responsible for triggering allergic reactions, along with earlier-stage programs in kidney diseases such as membranous nephropathy and other immune-mediated conditions. 

Under the agreement, Lilly will acquire Merida and pay up to $2.875 billion in cash, inclusive of an upfront payment, and contingent milestone payments. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026. 

Source: Eli Lilly and Company