Lilly Acquires Morphic

Stock.adobe.com

Eli Lilly and Company successfully completed its acquisition of Morphic Holding, Inc, a biopharmaceutical company focused on integrin therapies for chronic diseases.¹ Lilly will add Morphic’s assets to its pipeline, including MORF-057, a treatment for inflammatory bowel disease (IBF).

Lilly agreed to purchase all issued and outstanding shares of Morphic’s stock for $57 a share.

In a press release, Lilly’s chief scientific officer and president of Lilly Research Laboratories and Lilly Immunology Daniel Skovronsky, MD, PhD, said, “We are committed to exploring innovative approaches for immunologic diseases and believe Morphic's pipeline holds promise in improving outcomes and expanding treatment options for people with devastating conditions like IBD. Acquiring Morphic reinforces our growing capabilities in gastroenterology, building on the strong foundation of Omvoh, our first-in-class molecule already approved and launched around the world for ulcerative colitis and under regulatory review for Crohn's disease. Further, the acquisition allows Lilly to research potential combination treatments that could better serve people beyond what is possible with currently available medicines."

This is just the latest story of Lilly expanding its business. Earlier this month, the company announced the opening of its Lilly Seaport Innovation Center in Boston, Massachusetts.² The facility will focus on developing RNA- and DNA-based therapies and will developing new drug treatments for a variety of conditions.

In a press release, Skovronsky said, “The opening of LSC expands upon Lilly's long-standing presence in the Boston area. We are committed to being supportive neighbors in this hub of discovery and innovation, further collaborating with leading institutions and new talent to continue delivering transformative medicines for the people who need them most."

Also in August, Lilly announced its financial results for the second quarter of 2024.³ During that time period, the company’s revenue increased by 36% compared to the same quarter in 2023, and the company announced that it was increasing its full-year revenue guidance by $3 billion.

In a press release issued at the time, Lilly CEO and chair David A. Ricks said, “Mounjaro, Zepbound and Verzenio led our strong financial performance in the second quarter as we advanced our manufacturing expansion agenda, and it is equally exciting to see the growth around the world of our medicines for cancer, neurological disorders and autoimmune diseases. We also recently received approval of Kisunla to help people with Alzheimer's disease, a moment that was decades in the making. Lilly's performance and progress in Alzheimer's, metabolic disorders and many other serious diseases highlight the tenacity, focus and capability of our scientists, clinicians, engineers, customer teams and collaborators."

Sources

1. Lilly Completes Acquisition of Morphic to Improve Outcomes and Expand Options for People Living with Inflammatory Bowel Disease. Eli Lilly and Company. August 16, 2024. https://www.prnewswire.com/news-releases/lilly-completes-acquisition-of-morphic-to-improve-outcomes-and-expand-options-for-people-living-with-inflammatory-bowel-disease-302224347.html
2. Lilly Opens State-of-the-Art Research and Development Center in the Boston Seaport. Eli Lilly and Company. August 13, 2024. Accessed August 16, 2024. https://www.prnewswire.com/news-releases/lilly-opens-state-of-the-art-research-and-development-center-in-the-boston-seaport-302219992.html
3. Lilly Reports Q2 2024 Financial Results, Raises Full-Year Revenue Guidance by $3 Billion. Eli Lilly and Company. August 8, 2024. Accessed August 16, 2024. https://www.prnewswire.com/news-releases/lilly-reports-q2-2024-financial-results-raises-full-year-revenue-guidance-by-3-billion-302217339.html