Eli Lilly Finalizes Acquisition Agreement to Acquire Morphic for $3.2 Billion – InsideArbitrage

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Eli Lilly and Company (NYSE: LLY), a global leader in the pharmaceutical industry, on July 8, 2024, announced the completion of a definitive agreement to acquire Morphic Therapeutic, Inc. (NASDAQ: MORF) for $3.2 billion in cash, giving the U.S. drugmaker access to an experimental drug for types of inflammatory bowel diseases. This strategic acquisition aims to bolster Lilly's innovative drug development pipeline, particularly in the areas of autoimmune diseases and fibrosis.

Mechanics of the Deal:

Under the agreement, Lilly will launch a tender offer to acquire all outstanding shares of Morphic at $57 per share in cash, representing a 79% premium to Morphic’s Friday close.

The acquisition, expected to close in the third quarter of 2024, will expand Eli Lilly’s immunology pipeline through oral integrin therapies.

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Strategic Fit and Benefits

Eli Lilly's acquisition of Morphic Therapeutic aligns with the company's long-term strategy to enhance its portfolio of groundbreaking therapies. Morphic Therapeutic specializes in the development of oral integrin therapies, a class of drugs designed to target and modulate integrin receptors, which play a crucial role in various disease processes. The acquisition is expected to:

• Enhance Lilly's Autoimmune Disease Portfolio: By integrating Morphic's cutting-edge oral integrin therapies, Lilly aims to provide new, effective treatment options for patients with autoimmune diseases, including inflammatory bowel disease and other chronic inflammatory conditions.
  
  
• Accelerate Fibrosis Research: Morphic's advanced research in integrin inhibitors complements Lilly's ongoing efforts to develop treatments for fibrosis, a condition characterized by excessive tissue scarring that can lead to organ dysfunction and failure.
  
  
• Strengthen R&D Capabilities: The merger will bring together Lilly's extensive research and development capabilities with Morphic's innovative approach to integrin biology, fostering a collaborative environment for scientific discovery and therapeutic advancement.

Leadership Perspectives

• David A. Ricks, Chairman and CEO of Eli Lilly and Company, commented: "This acquisition underscores our commitment to investing in innovative science to address unmet medical needs. Morphic's pioneering work in oral integrin therapies aligns perfectly with our strategic objectives and reinforces our dedication to delivering life-changing treatments to patients around the world."
  
  
• Praveen Tipirneni, President and CEO of Morphic Therapeutic, added: "We are thrilled to join forces with Eli Lilly, a company with a rich history of scientific excellence and patient-centered innovation. This acquisition will enable us to accelerate the development of our promising pipeline and bring transformative therapies to patients more rapidly."

About Eli Lilly and Company

Eli Lilly and Company is a global healthcare leader uniting caring with discovery to create medicines that make life better for people around the world. Founded over 145 years ago, Lilly has pioneered medical breakthroughs, from insulin to modern oncology treatments. With a steadfast commitment to scientific innovation, Lilly continues to advance a robust pipeline of therapies in areas of significant unmet medical need.

About Morphic Therapeutic, Inc.

Morphic Therapeutic is a biotechnology company developing a new generation of oral integrin therapies to treat serious chronic diseases. Utilizing its proprietary MInT Platform, Morphic has made significant strides in understanding integrin biology and developing novel small molecule therapeutics. Morphic's innovative approach aims to provide patients with more effective and convenient treatment options.

Deal Metrics:

For more details regarding this M&A transaction, please visit the Deal Metrics page here: @ https://www.insidearbitrage.com/deal-metrics/MORF/3001/morphic-holding-inc-to-be-acquired-by-eli-lilly-and-company/

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure. – Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc. – News and SEC filings. – A history of deal updates. – And a whole lot more.

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Disclaimer: This press release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or similar expressions. These statements are based on the current expectations and beliefs of Morphic Holding, Inc. (MORF) and Eli Lilly and Company (LLY) management and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially from those described in the forward-looking statements.

This content does not constitute financial advice, investment advice, or any other kind of advice, and should not be relied upon as such. Readers are encouraged to conduct their own research and seek professional guidance before making any investment decisions. The completion of the transaction is subject to various conditions, including shareholder and regulatory approvals, and there can be no assurances that the transaction will be completed as described. Neither the author nor the publishing platform assumes any responsibility or liability for any errors or omissions in the content of this press release.

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