Eli Lilly and Co (NYSE:LLY) said it has signed a definitive agreement to acquire DICE Therapeutics for $2.4 billion, sending shares of the biopharmaceutical company higher in pre-market trade.
Under the deal, which has been approved by the boards of both companies, Lilly said it will commence a tender offer to acquire all outstanding shares of DICE for $48 per share in cash, a 42% premium to its previous closing price.
The company noted that DICE uses its proprietary DELSCAPE technology platform to develop novel oral therapeutic candidates, including oral IL-17 inhibitors currently in clinical development, to treat chronic diseases in immunology.
"In combination with its novel technology and expertise in drug discovery, DICE's talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases," Eli Lilly’s Patrik Jonsson said in a statement.
DICE CEO Kevin Judice commented: "We're eager to see our pipeline, including our oral IL-17 inhibitors, DC-806 and DC-853, benefit from Lilly's resources and global reach and I'm excited by the prospect of watching these two talented teams in a united quest for scientific innovation.”
The companies said the transaction is not subject to any financing condition and is expected to close in the third quarter of 2023, subject to customary closing conditions.
DICE’s shares surged 38% to $46.65 in pre-market trade. Eli Lilly’s shares were up 0.1% at $448.05.
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