Eli Lilly to acquire Dice Therapeutics for $2.4B to treat autoimmune diseases.
The American pharmaceutical company Eli Lilly has announced that it plans to buy biopharmaceutical company Dice Therapeutics. The $2.4 billion deal is expected to help Eli Lilly develop more drugs to treat immune diseases.
Both companies have released an official press release stating that Eli Lilly will purchase all of Dice’s outstanding shares through a tender offer. This deal has been approved by both boards of directors and will cost $48 per share, totaling almost $2.4 billion. The agreement also allows for a second-step merger that will enable Eli Lilly to purchase any Dice shares that were not included in the tender offer, subject to successful closing of the tender offer. The second step is also subject to expected closing conditions, such as official antitrust clearance.
Terms of the Eli Lilly and Dice Deal
The press release also outlines other terms of the agreement. For example, the deal allows Eli Lilly to choose whether it is an asset acquisition or a business merger. Additionally, the transaction is expected to close in Q3 2023 as no financing conditions are required.
Dice Therapeutics CEO Kevin Judice expressed his enthusiasm for the deal, saying that the company is excited to have its products benefit from Eli Lilly’s resources. Judice also believes that there is great potential as both companies embark on a “united quest for scientific innovation.”
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Eli Lilly’s executive vice president Patrik Jonsson thinks that the partnership between both companies will significantly help people with related health challenges. Jonsson said:
“In combination with its novel technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases. We welcome DICE colleagues to Lilly and, together, we can tackle the challenges ahead in finding new treatments for patients with significant unmet medical needs.”
Eli Lilly, founded in 1876, has developed medications and diagnostics that help treat various ailments, including cancer and diabetes. Its portfolio includes drugs that tackle disease in the areas of neurodegeneration, immunology, neuroscience, and cardiovascular disorders.
Eli Lilly’s common drugs include Taltz and Olumiant. Taltz, a treatment for plaque psoriasis and psoriatic arthritis, brought in $2.48 billion for Eli Lilly last year. Olumiant, which treats rheumatoid arthritis, generated sales worth $830.5 million in 2022.
To grow its portfolio and expand offerings, Eli Lilly is investing in artificial intelligence (AI) and studying its benefits for drug discovery. Eli Lilly CEO David Ricks believes AI is “one of the most exciting technological moves,” and the company is investing in machine learning and AI for several endeavors, including drug discovery, robotic-press automation, natural-language generation, and chatbots. Ricks also said AI will help Eli Lilly automate specific business processes to “augment human productivity” for drug discovery.