Lilly To Acquire Skin Therapy Company Dermira for $1.1 Billion
Eli Lilly and Company has agreed to acquire Dermira, a biopharmaceutical company that develops new therapies for chronic skin conditions, for approximately $1.1 billion.
Lilly says the acquisition will expand its immunology pipeline with the addition of lebrikizumab, a new investigational drug in Phase III development for the treatment of moderate-to-severe atopic dermatitis in adolescent and adult patients. The acquisition of Dermira will also expand Lilly’s portfolio of marketed dermatology medicines with the addition of Qbrexza (glycopyrronium) cloth, a medicated cloth approved by the US Food and Drug Administration (FDA) for the topical treatment of primary axillary hyperhidrosis (uncontrolled excessive underarm sweating).
Under the agreement, Lilly will commence a tender offer to acquire all outstanding shares of Dermira for a purchase price of $18.75 per share in cash, or approximately $1.1 billion. The transaction is not subject to any financing condition and is expected to close by the end of the first quarter of 2020, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of Dermira’s common stock. Following the successful closing of the tender offer, Lilly will acquire any shares of Dermira that are not tendered into the tender offer through a second-step merger at the tender offer price. Certain Dermira stockholders, beneficially owning approximately 13% of Dermira’s outstanding common stock, have agreed to tender their shares in the tender offer.
Lebrikizumab is a monoclonal antibody designed to bind interleukin 13 (IL-13) with high affinity that is being evaluated in a Phase III clinical development program for the treatment of moderate-to-severe atopic dermatitis in adolescent and adult patients, ages 12 years and older. Lebrikizumab was granted Fast Track designation from the FDA in December 2019. Qbrexza is an anticholinergic indicated for topical treatment of primary axillary hyperhidrosis in adult and pediatric patients 9 years of age and older.
Source: Eli Lilly and Company