Cambridge, Mass. — Eli Lilly and Company announced an agreement to acquire Merida Biosciences Inc. in a deal worth up to $2.875 billion, expanding Lilly’s presence in autoimmune and allergic disease therapeutics.
Merida is a biotechnology company developing precision biologics designed to selectively remove disease-causing autoantibodies while preserving normal immune function.
Its lead program, MER511, is in Phase 1 development for Graves’ disease and thyroid eye disease. The treatment is designed to target thyroid-stimulating immunoglobulins, the autoantibodies that drive both conditions.
Initial Phase 1 data showed that MER511 produced robust reductions in pathogenic thyroid-stimulating antibodies while demonstrating a favorable early safety profile, according to the companies.
“We’re building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects. Merida’s lead program is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves’ disease and thyroid eye disease, while preserving normal immune function, with initial Phase 1 data already pointing to the potential for improved efficacy and safety,” said Francisco Ramírez-Valle, M.D., Ph.D., Senior Vice President of Lilly Immunology Research and Early Clinical Development. “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.”
Graves’ disease affects about 3 million people in the United States and is associated with increased cardiovascular risk and mortality. An estimated 25% to 40% of patients with Graves’ disease develop thyroid eye disease, which can cause pain, disfigurement and, in severe cases, vision loss.
Merida’s pipeline also includes MER769, a preclinical program targeting diseases including food allergy, asthma and chronic spontaneous urticaria, along with earlier-stage programs for kidney and other immune-mediated diseases.
“Merida was founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly,” said Adam Townsend, CEO of Merida. “Today’s announcement reflects the hard work of the entire Merida team, and joining Lilly gives our science the resources and commitment to realize its potential for patients with immune-mediated conditions.”
Under the agreement, Lilly will pay up to $2.875 billion in cash, including an upfront payment and additional milestone payments.
The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2026.
