Eli Lilly to purchase Merida Biosciences in move to strengthen treatments for serious autoimmune and allergic conditions

Merida’s antibody engineering platform is built to precisely and durably remove disease-causing antibodies while leaving normal immune function intact.

Early Phase 1 data show that MER511 produced strong reductions in pathogenic thyroid-stimulating antibodies alongside a favorable early safety profile.

The acquisition bolsters Lilly’s immunology capabilities and its ability to raise the bar for care in immune-mediated conditions with substantial unmet need.

Eli Lilly and Company and Merida Biosciences, Inc., a biotechnology company developing a new category of precision therapeutics for serious autoimmune and allergic conditions, announced they have signed a definitive agreement under which Lilly will acquire Merida.

Merida is developing biologic therapies engineered to selectively break down pathogenic autoantibodies, the underlying agents responsible for a range of immune-mediated diseases. This precision degradation approach is designed to target the biological root cause of these conditions, rather than broadly dampening the immune system, which is how many existing therapies work.

Merida’s lead candidate, MER511, is currently in Phase 1 development for Graves’ disease and thyroid eye disease, both driven by thyroid-stimulating immunoglobulins, autoantibodies that activate the thyroid-stimulating hormone receptor. Graves’ disease affects an estimated 3 million people in the United States, and those living with it face heightened cardiovascular risk and mortality. Around 25 to 40 percent of people with Graves’ disease go on to develop thyroid eye disease, which can lead to pain, disfigurement, and, in severe cases, loss of vision. Although treatments exist for both conditions, none directly target the autoantibodies responsible for causing them. Given that pathogenic autoantibodies underlie a wide array of serious diseases, Merida’s platform holds potential well beyond its lead program. The company’s broader pipeline includes MER769, a preclinical program targeting food allergy, asthma, chronic spontaneous urticaria, and other conditions driven by the antibody responsible for triggering allergic reactions, along with earlier-stage programs addressing kidney diseases such as membranous nephropathy and other immune-mediated conditions.

Francisco Ramírez-Valle, M.D., Ph.D., senior vice president of Lilly immunology research and early clinical development, said the company is building its pipeline around therapies capable of meaningfully changing the course of disease rather than simply managing its downstream effects. He said Merida’s lead program is designed to do exactly that, selectively and directly eliminating the autoantibodies behind Graves’ disease and thyroid eye disease while preserving normal immune function, with initial Phase 1 data already suggesting potential improvements in both efficacy and safety. He said Lilly sees an opportunity to apply this precision approach across a broad range of antibody-driven diseases and is looking forward to advancing the technology alongside the Merida team.

Adam Townsend, chief executive officer of Merida, said the company was founded to fundamentally change how autoimmune and allergic diseases are treated by directly targeting the antibodies that drive them, rather than suppressing the immune system as a whole. He credited the scientific leadership of the company’s founder and chief scientific officer, Dario Gutierrez, for helping the team advance that idea from an early concept to clinical data, adding that the results so far reinforce the team’s belief that this approach can meaningfully help patients. He said the announcement reflects the work of the entire Merida team and that joining Lilly will give the science the resources and support needed to realize its potential for people living with immune-mediated conditions.

Under the terms of the agreement, Lilly will acquire Merida for up to $2.875 billion in cash, including an upfront payment and additional payments contingent on reaching certain milestones.

The transaction remains subject to standard closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026. Lilly will determine how to account for the transaction under Generally Accepted Accounting Principles once it closes, after which it will be reflected in the company’s financial results and guidance going forward.

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Related Topics and Keywords

autoimmune and allergic conditions, Eli Lilly, Merida Biosciences