Eli Lilly Acquires Morphic Holding for $3.2 BillionEli Lilly Acquires Morphic Holding for $3.2 Billion U.S. pharmaceutical giant Eli Lilly has announced the acquisition of Morphic Holding for $3.2 billion. The acquisition will provide Lilly with access to MORF-057, an experimental drug for inflammatory bowel disease (IBD). MORF-057 is currently undergoing evaluation in Phase 2 clinical trials for ulcerative colitis and Crohn’s disease. According to the announcement, Lilly will pay $57 per share for Morphic, representing a 79% premium to the company’s last closing price. The acquisition has been met with positive reactions in the market. Shares of Morphic surged by 76% to $56.15 in premarket trading. This deal is expected to strengthen Lilly’s pipeline in the treatment of IBD. Inflammatory bowel disease (IBD) is a chronic condition that affects the digestive tract. It can cause a range of symptoms, including abdominal pain, diarrhea, and weight loss. Ulcerative colitis and Crohn’s disease are two of the most common types of IBD. MORF-057 is a small molecule drug that targets the G protein-coupled receptor kinase 2 (GRK2). GRK2 is involved in the regulation of inflammatory responses in the body. By targeting GRK2, MORF-057 is believed to have the potential to reduce inflammation and improve symptoms in patients with IBD.
(Reuters) – Eli Lilly is acquiring Morphic Holding for $3.2 billion, the companies said on Monday, giving the U.S. pharmaceutical giant access to an experimental drug for inflammatory bowel disease.
Shares of drugmaker Morphic rose 76% to $56.15 in premarket trading after Lilly bid $57 a share, a 79% premium to the stock’s last closing price.
Morphic’s lead drug, MORF-057, is being evaluated in two Phase 2 trials in patients with ulcerative colitis and one Phase 2 trial in Crohn’s disease.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini Ganguli)
