Eli Lilly has agreed to acquire Merida Biosciences for up to $2.875 billion in cash, including an upfront payment and contingent milestones, to advance precision treatments for serious autoimmune and allergic diseases.
The transaction is expected to close in the fourth quarter of 2026, subject to customary conditions and regulatory approvals. It would bolster Lilly’s immunology pipeline through Merida’s antibody-engineering platform, which is designed to selectively and durably remove disease-causing antibodies while preserving normal immune function.
Merida’s approach targets pathogenic autoantibodies directly rather than broadly suppressing the immune system, as many current therapies do. The company believes its technology could have applications across a range of antibody-driven immune diseases.
Its lead program, MER511, is in Phase 1 development for Graves’ disease and thyroid eye disease, or TED. Both conditions are driven by thyroid-stimulating immunoglobulins—autoantibodies that activate the thyroid-stimulating hormone receptor.
Graves’ disease affects about 3 million people in the United States and is associated with elevated cardiovascular risk and mortality, according to the companies. About 25% to 40% of those with Graves’ disease develop TED, which may cause pain, disfigurement and, in severe cases, vision loss.
Although therapies are approved for both diseases, none directly target the underlying pathogenic autoantibodies, Lilly and Merida said. Initial Phase 1 results for MER511 showed robust reductions in thyroid-stimulating antibodies and an initially favorable safety profile.
Merida’s pipeline also includes MER769, a preclinical program aimed at diseases driven by the antibody responsible for triggering allergic reactions. Potential indications include food allergy, asthma and chronic spontaneous urticaria. Earlier-stage work includes programs for kidney diseases, including membranous nephropathy, and other immune-mediated conditions.
Francisco Ramírez-Valle, senior vice president of Lilly immunology research and early clinical development, said the acquisition fits the company’s effort to build a pipeline of therapies intended to change the course of disease rather than only address downstream effects.
Adam Townsend, Merida’s chief executive, said joining Lilly would provide the resources and commitment needed to advance the company’s science for patients with immune-mediated diseases.
Lilly said it will determine the transaction’s accounting treatment under generally accepted accounting principles after closing. The acquisition would then be reflected in the company’s financial results and guidance.
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