Eli Lilly to Buy Morphic Holding for $3.2 Billion — Update

By Colin Kellaher

Eli Lilly has agreed to buy biopharmaceutical company Morphic Holding for $3.2 billion in a deal that bolsters the drugmaker's immunology pipeline.

Eli Lilly on Monday said it would pay $57 a share for Morphic, a 79% premium to Friday's closing price of $31.84 for the Waltham, Mass., company.

Morphic is developing therapies for the treatment of serious chronic diseases, with a lead program targeting the inflammatory bowel diseases ulcerative colitis and Crohn's disease.

Eli Lilly late last year won U.S. Food and Drug Administration approval of its Omvoh treatment for moderately to severely active ulcerative colitis in adults.

Indianapolis-based Eli Lilly said it expects to complete the acquisition, which isn't subject to any financing conditions, in the third quarter.

Morphic shares were recently up 76% at $56.17 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

July 08, 2024 07:15 ET (11:15 GMT)

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