Eli Lilly & Company and Merida Biosciences announced a definitive agreement for Eli Lilly to acquire Merida, to advance precision therapeutics for serious autoimmune and allergic diseases.

Under the terms of the agreement, Eli Lilly is set to acquire Merida and pay upwards of $2.875 billion in cash, inclusive of an upfront payment and contingent milestone payments.¹The acquisition is set to add a distinct scientific approach to Lilly's immunology pipeline.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026.¹ Eli Lilly is expected to determine the accounting treatment of the transaction in accordance with Generally Accepted Accounting Principles upon closing, after which it will be reflected in Eli Lilly's financial results and financial guidance.¹

Currently, Merida is developing biologics engineered to selectively degrade pathogenic autoantibodies, the disease-causing agents behind a range of immune-mediated conditions. The precision degradation approach is intended to address the biological cause of these diseases rather than broadly suppressing the immune system, as many current therapies do.

What is Merida's lead program?

Merida's lead program, MER511, is in Phase I development for Graves' disease and thyroid eye disease, conditions driven by thyroid-stimulating immunoglobulins, autoantibodies that activate the thyroid-stimulating hormone receptor.^1,2 Graves' disease affects approximately 3 million people in the U.S., and patients face elevated cardiovascular risk and mortality, with roughly 25% to 40% of people with Graves' disease going on to develop thyroid eye disease.^1,2 While there are approved treatments for both conditions, none directly target the autoantibodies that cause them.

Why does this matter beyond Graves' disease?

Merida's platform has potential application well beyond its lead program, as the company's pipeline also includes MER769, a preclinical program focused on food allergy, asthma, chronic spontaneous urticaria and other diseases driven by the antibody responsible for triggering allergic reactions, along with earlier-stage programs in kidney diseases such as membranous nephropathy and other immune-mediated conditions.¹

"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects. Merida's lead program is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves' disease and thyroid eye disease, while preserving normal immune function, with initial Phase I data already pointing to the potential for improved efficacy and safety," said Francisco Ramírez-Valle, M.D., Ph.D., senior vice president, Lilly immunology research and early clinical development. "We see potential to apply this precision approach across a broad range of antibody-driven diseases, and we look forward to advancing this novel technology working with the Merida team."

"Merida was founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly. Under our CSO and founder Dario Gutierrez's scientific leadership, our team has advanced that idea from concept to clinical data, and what we've seen so far reinforces our conviction that this approach can make a meaningful difference for patients," said Adam Townsend, chief executive officer of Merida. "Today's announcement reflects the hard work of the entire Merida team, and joining Lilly gives our science the resources and commitment to realize its potential for patients with immune-mediated conditions."

What happens next?

The deal extends Lilly's immunology strategy into precision autoantibody degradation, a mechanism distinct from the broad immune suppression that characterizes many existing therapies for autoimmune and allergic disease. With MER511 already generating early Phase I data in Graves' disease and thyroid eye disease, and MER769 positioned behind it in food allergy, asthma and chronic spontaneous urticaria, the acquisition gives Eli Lilly a platform its executives describe as “applicable across a broad range of antibody-driven conditions.”¹

When talking with Pharmaceutical Executive, David Jimenez, President of Janssen Immunology, noted the importance and excitement around advancements in immunology treatments. "Looking ahead, what's exciting is that we are in a promising time as it relates to scientific innovation in immunology. This could mean additional advancements in treatment and care, including the opportunity to maximize the potential of medicines and apply them to many diseases," said Jimenez.

Sources

1. Lilly to acquire Merida Biosciences to advance treatments for serious autoimmune and allergic diseases Eli Lilly and Company August 31, 2026, https://www.prnewswire.com/news-releases/lilly-to-acquire-merida-biosciences-to-advance-treatments-for-serious-autoimmune-and-allergic-diseases-302864686.html
2. OR31-05 Specific and Deep Depletion of anti-TSHR Autoantibodies for the Treatment of Graves’ and Thyroid Eye Disease October 22, 2025, https://pmc.ncbi.nlm.nih.gov/articles/PMC12544635/