INDIANAPOLIS - Eli Lilly and Company (NYSE: NYSE:LLY) has finalized its purchase of biopharmaceutical firm Morphic Holding, Inc. (NASDAQ: NASDAQ:MORF), a move aimed at enhancing its portfolio of immunology treatments, particularly in gastroenterology. The acquisition, which culminated in a tender offer for Morphic's shares at $57 each, adds the promising oral integrin therapy MORF-057, targeting inflammatory bowel disease (IBD), to Lilly's pipeline.
The transaction was completed on Thursday, with approximately 92.8% of Morphic's outstanding shares tendered. Following the tender offer, a second-step merger was executed, leading to the delisting of Morphic's common stock from The Nasdaq Global Market.
Daniel Skovronsky, M.D., Ph.D., chief scientific officer of Lilly and president of Lilly Research Laboratories and Lilly Immunology, emphasized the strategic fit of the acquisition. "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," he said.
Lilly's existing gastroenterology portfolio includes Omvoh™ (mirikizumab-mrkz), a treatment for ulcerative colitis, which has received global approval and is under regulatory review for Crohn's disease. The addition of Morphic's therapies could potentially lead to combination treatments that surpass current medicinal capabilities.
Citi served as the exclusive financial advisor to Lilly, with Kirkland & Ellis LLP providing legal counsel. Morphic's financial advisement came from Centerview Partners LLC, with additional advice from Evercore Group L.L.C., and Fenwick & West LLP served as legal counsel.
This expansion reflects Lilly's ongoing commitment to address significant health challenges through innovative treatments. The information regarding the acquisition is based on a press release statement.
In other recent news, Eli Lilly and Company raised approximately $4.96 billion through the sale of notes, with the proceeds intended for general corporate purposes, including the repayment of existing debt and potential acquisitions. The company also issued cease-and-desist letters to healthcare providers, urging them to cease promoting alternative weight-loss medications similar to its product, Zepbound. In addition, Eli Lilly inaugurated the Lilly Seaport Innovation Center in Boston, aimed at advancing research in genetic medicines.
The Biden administration has selected 10 prescription medicines, including Eliquis by Bristol Myers (NYSE:BMY) Squibb and Pfizer (NYSE:PFE), Januvia by Merck & Co, and Xarelto by Johnson & Johnson, for price negotiations with the Medicare health program. This is expected to save the U.S. government $6 billion in the first year from newly negotiated lower prices. The new prices are scheduled to take effect in 2026.
These recent developments highlight the efforts of Eli Lilly and the Biden administration to manage costs and advance scientific research. The negotiations with Medicare are part of President Joe Biden's Inflation Reduction Act to control drug prices, while Eli Lilly's actions aim to protect its market share and foster scientific innovation.
InvestingPro Insights
As Eli Lilly and Company (NYSE: LLY) continues to bolster its presence in the pharmaceuticals industry with strategic acquisitions such as Morphic Holding, Inc., the financial metrics and market performance of Lilly offer additional insights into its current standing and future potential. According to InvestingPro, Lilly's market capitalization stands at a robust $838.82 billion, reflecting the company's significant scale and influence within the sector.
InvestingPro data also highlights a notable revenue growth of 31.87% over the last twelve months as of Q2 2024, a testament to Lilly's expanding operations and successful integration of new assets like Morphic's MORF-057. The company's gross profit margin remains impressive at 80.75%, indicating efficient management and a strong ability to translate sales into profits.
InvestingPro Tips suggest that Lilly's net income is expected to grow this year, an optimistic outlook for investors considering the company's recent acquisition moves. Furthermore, 16 analysts have revised their earnings upwards for the upcoming period, signaling confidence in Lilly's financial trajectory and its ability to leverage new therapies for growth.
For those interested in deeper analysis and additional insights, InvestingPro offers 19 more InvestingPro Tips for Eli Lilly, ranging from its dividend consistency to its valuation multiples. These tips can provide investors with a comprehensive understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.