Eli Lilly and Co (NYSE:LLY) has struck a deal to acquire Morphic Holding Inc (NASDAQ:MORF), a maker of inflammatory bowel disease (IBD) drugs, for approximately $3.2 billion.
On a per-share basis the deal is priced at $57, to be paid in cash.
The acquisition is expected to expand Lilly's immunology pipeline with innovative oral integrin therapies, the pharmaceutical major said in a statement.
Morphic's lead program, MORF-057, is a selective oral small molecule inhibitor for the treatment of IBD – it is currently being evaluated in two Phase 2 studies in ulcerative colitis and one Phase 2 study in Crohn's disease.
It is also advancing a preclinical pipeline focused on other autoimmune, pulmonary hypertensive, fibrotic, and cancer diseases.
“Oral therapies could open up new possibilities for earlier intervention in diseases like ulcerative colitis, and also provide the potential for combination therapy to help patients with more severe disease," Lilly chief science officer Daniel Skovronsky said.
Morphic chief executive, Praveen Tipirneni, meanwhile, added: "Morphic has always believed that the immense potential of MORF-057 to benefit patients suffering from IBD could be optimized by the ideal strategic partner.
“Lilly brings unparalleled resources and commitment to the inflammation and immunology field.”
In New York, Morphic shares soared over 75% in opening deals to change hands at $55.80.