Lilly agrees to buy Merida Biosciences, betting on antibody-targeting approach to autoimmune disease

Eli Lilly has signed a definitive agreement to acquire Merida Biosciences, a biotech developing precision therapies for serious autoimmune and allergic conditions.

Merida’s technology is built around biologics designed to selectively break down pathogenic autoantibodies, the antibodies that actually drive disease in many immune-mediated conditions. Rather than dampening the immune system broadly, the way most current treatments do, the approach targets the specific antibodies responsible for causing harm.

The company’s furthest-along program, MER511, is in Phase 1 testing for Graves’ disease and thyroid eye disease, both caused by thyroid-stimulating immunoglobulins, autoantibodies that activate the thyroid-stimulating hormone receptor. About 3 million people in the US have Graves’ disease, which carries increased cardiovascular risk and higher mortality. Between roughly a quarter and 40% of those patients go on to develop thyroid eye disease, which can bring pain, disfigurement and, in severe cases, loss of vision. Existing treatments for both conditions don’t directly target the underlying autoantibodies. Because pathogenic autoantibodies underlie many serious diseases, Merida sees its platform extending well past this first program; its pipeline also includes MER769, a preclinical effort targeting food allergy, asthma, chronic spontaneous urticaria and other conditions driven by the antibody behind allergic reactions, plus earlier programs in kidney diseases including membranous nephropathy and other immune-related conditions.

Francisco Ramírez-Valle, senior vice president of Lilly immunology research and early clinical development, said Lilly is shaping its pipeline around treatments that alter the course of disease rather than just managing its symptoms, and described Merida’s lead program as built for exactly that: eliminating the autoantibodies behind Graves’ disease and thyroid eye disease while leaving normal immune function intact, with early Phase 1 results already hinting at stronger efficacy and safety. He said Lilly sees room to apply the same precision strategy across a wider set of antibody-driven diseases and is looking forward to developing the technology alongside Merida’s team.

Adam Townsend, Merida’s chief executive, said the company was created to change the underlying treatment strategy for autoimmune and allergic disease by going after the antibodies causing them instead of suppressing immune function broadly. He credited chief scientific officer and founder Dario Gutierrez with leading the science from early concept to clinical data, and said the results so far strengthen the team’s belief that the approach can meaningfully help patients. He called the deal a reflection of the whole team’s work and said joining Lilly gives the science the backing needed to reach its potential for people with immune-mediated conditions.

Lilly will pay up to $2.875 billion in cash under the deal terms, combining an upfront payment with milestone payments tied to future progress. The acquisition still needs regulatory clearance and other standard approvals, and is expected to close in the fourth quarter of 2026. Lilly will determine how to account for the transaction under GAAP once it closes, after which it will show up in the company’s financial results and guidance.

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autoimmune disease, elli lilly, Lilly, Merida Biosciences