Eli Lilly to acquire Morphic for $3.2bn to bolster chronic disease pipeline

Eli Lilly has announced its acquisition of Morphic Therapeutics for roughly $3.2 billion, significantly enhancing its pipeline for chronic diseases. This strategic move grants Lilly access to Morphic’s leading program, MORF-057, an oral small molecule inhibitor targeting α4β7 integrin for inflammatory bowel disease (IBD). This promising candidate, currently in mid-stage clinical trials, aims to treat conditions such as ulcerative colitis and Crohn’s disease. Lilly believes MORF-057 can potentially improve patient outcomes and broaden available treatment options.

IBD affects approximately 3.1 million adults in the United States. This umbrella term encompasses chronic inflammatory conditions of the gastrointestinal tract, primarily Crohn’s disease and ulcerative colitis. While the root cause of IBD remains unclear, its symptoms frequently include persistent diarrhea, abdominal pain, rectal bleeding or bloody stools, weight loss, and fatigue.

Praveen Tipirneni, CEO of Morphic, highlighted the potential of their integrin technology platform in developing innovative integrin therapeutics. He described MORF-057 as a prime example of their efforts, noting that this oral small molecule inhibitor could be both well-tolerated and effective, potentially opening up new avenues in IBD treatment.

Beyond MORF-057, the acquisition also includes Morphic’s preclinical pipeline, which comprises molecules designed to tackle autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases, and cancer. According to the agreement, Lilly will initiate a tender offer to purchase all outstanding shares of Morphic at a price of $57 per share in cash.

Daniel Skovronsky, Lilly’s Chief Scientific Officer and President of Lilly Research Laboratories and Lilly Immunology, emphasized the transformative potential of oral therapies. He noted that such treatments could not only enable earlier interventions in diseases like ulcerative colitis but also pave the way for combination therapies that may benefit patients with more severe conditions.

This acquisition follows closely on the heels of another significant move by Lilly. Just over a week prior, Lilly agreed to pay Radionetics Oncology $140 million upfront as part of a partnership focused on G protein-coupled receptor-targeting small-molecule radiopharmaceuticals. This strategic deal also grants Lilly the exclusive option to acquire Radionetics for $1 billion. Additionally, in May, Lilly entered into a strategic multi-target discovery collaboration with Aktis Oncology to develop novel anticancer radiopharmaceuticals.

These recent acquisitions and agreements reflect Lilly’s ongoing efforts to expand its research and development capabilities, particularly in the fields of chronic inflammatory diseases and innovative cancer treatments. The integration of Morphic’s promising therapeutics and advanced pipeline aligns with Lilly’s broader strategy to enhance its portfolio and deliver more effective treatment options to patients worldwide.