INDIANAPOLIS and CAMBRIDGE, Mass. -- Aug. 31, 2026 -- Eli Lilly and Company agreed to pay up to $2.875 billion in cash to acquire Merida Biosciences, a Cambridge, Massachusetts-based biotechnology company developing antibody-degrading therapies for autoimmune and allergic diseases. The figure includes an upfront payment plus contingent milestone payments under a definitive agreement announced by both companies. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026.
MER511 Cuts Pathogenic Thyroid Antibodies in Phase 1 Testing
Merida's lead asset, MER511, is in Phase 1 development for Graves' disease and thyroid eye disease, conditions driven by thyroid-stimulating immunoglobulins that activate the thyroid-stimulating hormone receptor. Initial Phase 1 data showed the compound achieved robust reductions in those pathogenic antibodies with a favorable initial safety profile, according to the companies. Graves' disease affects roughly 3 million people in the United States and carries elevated cardiovascular risk and mortality. Between 25 and 40 percent of those patients go on to develop thyroid eye disease, which can cause pain, disfigurement and, in severe cases, vision loss. Approved treatments exist for both conditions, but none directly target the autoantibodies that cause them.
Merida's Pipeline Extends to Food Allergy, Asthma and Kidney Disease
Merida's platform is engineered to selectively degrade pathogenic autoantibodies rather than broadly suppress immune function, an approach the company applies beyond its lead program. MER769, a preclinical asset, targets food allergy, asthma and chronic spontaneous urticaria by acting on the antibody responsible for triggering allergic reactions. Merida also holds earlier-stage programs in membranous nephropathy and other immune-mediated kidney diseases.
Adam Townsend, chief executive officer of Merida, said the company was founded to change how autoimmune and allergic diseases are treated by targeting the antibodies driving them directly. Francisco RamÃrez-Valle, senior vice president of Lilly immunology research and early clinical development, said Lilly sees potential to apply the precision-degradation approach across a broad range of antibody-driven diseases.
Centerview Partners Advises Merida, Ropes & Gray Counsels Lilly
Ropes & Gray LLP is acting as legal counsel to Lilly on the deal. Centerview Partners LLC is serving as exclusive financial advisor to Merida, with Goodwin Procter LLP as its legal counsel. Lilly said it will determine the acquisition's accounting treatment under GAAP once the transaction closes, after which the deal will be reflected in its financial results and guidance.