Eli Lilly to Buy Immunology Biotech Merida Biosciences in $2.9B Deal

LLY announced a definitive agreement to acquire clinical-stage biotech Merida Biosciences for up to $2.875 billion in an all-cash transaction. The deal brings MER511, a clinical-stage asset targeting Graves' disease and thyroid eye disease, into LLY's portfolio, alongside preclinical programs in allergy and kidney disease.

The acquisition marks LLY's tenth major deal in 2026, underscoring its aggressive expansion beyond cardiometabolic franchises. The company is deploying cash flow generated by its blockbuster GLP-1 drugs to diversify into immunology and specialty indications. MER511's focus on autoimmune thyroid conditions represents a new therapeutic area for LLY, expanding its addressable market beyond diabetes and obesity.

The $2.875 billion price tag positions this as a mid-sized tuck-in relative to LLY's recent M&A activity, suggesting management sees clear line-of-sight to commercial potential in the Graves' disease and thyroid eye disease markets.