Eli Lilly and Company has entered into a definitive agreement to acquire Merida Biosciences, for up to USD 2.875 billion in cash, including an upfront payment and contingent milestone payments. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.

The acquisition will give Lilly access to Merida’s precision therapeutics platform designed to selectively degrade pathogenic autoantibodies, which drive several autoimmune and allergic diseases. Unlike broad immune suppression, the approach aims to directly remove disease-causing antibodies while preserving normal immune function.

Merida’s lead programme, MER511, is in Phase 1 development for Graves’ disease and Thyroid Eye Disease (TED). Both conditions are driven by thyroid-stimulating immunoglobulins. The company said early clinical data support the potential of its targeted approach.

Merida is also developing MER769, a preclinical programme targeting food allergy, asthma and chronic spontaneous urticaria, along with earlier-stage programmes for antibody-driven kidney and other immune-mediated diseases.

The transaction is expected to expand Lilly’s immunology pipeline with a platform aimed at addressing the underlying biological drivers of autoimmune and allergic conditions. Upon completion, Lilly will determine the transaction’s accounting treatment under GAAP and reflect the impact in its financial results and guidance.