Eli Lilly acquires Morphic to expand IBD portfolio

Eli Lilly and Company has finalized the acquisition of Morphic Holding, a biopharmaceutical firm, at a price of $57 per share. This $3.2 billion deal, initially agreed upon in July 2024, aims to strengthen Lilly’s portfolio in treating inflammatory bowel disease (IBD). The acquisition is expected to enhance treatment options for individuals suffering from IBD.

Morphic Holding has been a pioneer in developing oral integrin treatments for chronic diseases. One of its key assets, MORF-057, is a selective oral small molecule inhibitor of the α4β7 integrin, designed to treat IBD. This acquisition will support Lilly in advancing its capabilities and offerings in the field of gastroenterology.

In a related development, the US Food and Drug Administration (FDA) approved Lilly’s Omvoh (mirikizumab-mrkz) in October 2023. Omvoh is available as an infusion and injection for treating moderately to severely active ulcerative colitis in adults. This approval marks the first treatment for this type of IBD, bolstering Lilly’s commitment to finding innovative solutions for immunologic diseases.

Citi acted as the exclusive financial advisor to Lilly in this transaction, with legal counsel provided by Kirkland & Ellis. On the side of Morphic Holding, Centerview Partners served as the exclusive financial advisor, with additional advice from Evercore Group, and legal counsel from Fenwick & West.

Daniel Skovronsky, Lilly’s chief scientific officer, expressed the company’s dedication to exploring new approaches to treat immunologic diseases. He emphasized that Morphic’s pipeline shows promise in improving patient outcomes and expanding treatment options for severe conditions like IBD. The acquisition of Morphic not only reinforces Lilly’s existing capabilities in gastroenterology, built on the foundation of Omvoh but also provides opportunities for researching potential combination treatments that could surpass the effectiveness of currently available medicines.

This acquisition follows Eli Lilly’s recent establishment of the Lilly Seaport Innovation Center (LSC) in Boston’s Seaport district. The LSC serves as a hub for research and development in the pharmaceutical sector, further emphasizing Lilly’s commitment to innovation and advancing medical science.

Overall, the acquisition of Morphic Holding is a strategic move by Eli Lilly to enhance its treatment options for individuals with IBD, leveraging Morphic’s innovative oral integrin treatments and furthering the company’s capabilities in gastroenterology.

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