Eli Lilly has entered into a definitive agreement to acquire Merida Biosciences, a biotechnology company developing precision therapeutics for serious autoimmune and allergic diseases, for up to $2.875 billion in cash.
Merida is developing biologics designed to selectively degrade pathogenic autoantibodies, which drive a range of immune-mediated conditions. The company’s precision degradation approach aims to address the biological cause of these diseases, rather than broadly suppressing the immune system, as many current therapies do.
Merida’s lead programme, MER511, is currently in Phase 1 development for Graves’ disease and thyroid eye disease (TED). Both conditions are driven by thyroid-stimulating immunoglobulins, which are autoantibodies that activate the thyroid-stimulating hormone receptor.
The company’s pipeline also includes MER769, a preclinical programme focused on food allergy, asthma, chronic spontaneous urticaria and other diseases driven by the antibody responsible for triggering allergic reactions. Additional earlier-stage programmes are focused on kidney diseases such as membranous nephropathy and other immune-mediated conditions.
Francisco Ramírez-Valle, senior vice president, Lilly immunology research and early clinical development, said MER511 is designed to selectively and directly eliminate the autoantibodies that drive Graves’ disease and thyroid eye disease, while preserving normal immune function. Initial Phase 1 data have indicated the potential for improved efficacy and safety.
“We see potential to apply this precision approach across a broad range of antibody-driven diseases, and we look forward to advancing this novel technology working with the Merida team,” he said.
Merida CEO Adam Townsend said joining Lilly would provide the company’s technology with the resources and commitment needed to realise its potential for patients with immune-mediated conditions.
Under the terms of the agreement, Lilly will acquire Merida for an upfront payment plus contingent milestone payments, bringing the total potential transaction value to $2.875 billion.
The transaction remains subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026.
