Eli Lilly has agreed to acquire biotech Merida Biosciences in a deal worth up to $2.875bn, gaining access to an antibody-engineering platform designed to selectively eliminate disease-causing autoantibodies while preserving normal immune function.
The transaction will give Lilly Merida’s lead programme, MER511, which is being investigated in a Phase I trial for Graves’ disease and thyroid eye disease (TED).
Initial Phase I data has shown robust reductions in thyroid-stimulating antibodies, with the candidate also demonstrating a favourable initial safety profile, according to Lilly.
Targeting the drivers of autoimmune disease
Merida’s approach is designed to address pathogenic autoantibodies directly rather than broadly suppressing the immune system.
Autoantibodies can drive a range of immune-mediated diseases by mistakenly targeting or activating healthy tissues.
MER511 is designed to selectively degrade the thyroid-stimulating immunoglobulins associated with Graves’ disease and TED.
These autoantibodies activate the thyroid-stimulating hormone receptor, driving excessive thyroid hormone production and contributing to the development of TED in some patients.
While treatments are already available for both conditions, Lilly said they do not directly target the pathogenic autoantibodies responsible for the diseases.
“Merida’s lead programme is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves’ disease and thyroid eye disease, while preserving normal immune function,” said Francisco Ramírez-Valle, Senior Vice President of Lilly Immunology Research and Early Clinical Development.
Platform could extend beyond Graves’ disease
Lilly will also gain access to Merida’s broader pipeline, which includes MER769, a preclinical programme targeting IgE-mediated diseases including food allergy, asthma and chronic spontaneous urticaria.
The company also has earlier-stage programmes targeting immune-mediated kidney diseases, including membranous nephropathy.
The acquisition therefore gives Lilly an opportunity to apply Merida’s precision antibody-degradation technology across a range of conditions where pathogenic antibodies play a central role.
Under the terms of the agreement, Lilly will pay up to $2.875bn in cash, comprising an upfront payment and contingent milestone payments.
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to close in the fourth quarter of 2026.
For Lilly, the acquisition adds another potential platform technology to its expanding immunology pipeline, while providing Merida with the resources of a global pharma company to advance its antibody-degradation programmes through clinical development.
