Eli Lilly announced plans to acquire Massachusetts-based Morphic Therapeutics for $3.2 billion, aiming to bolster its portfolio with Morphic’s experimental pill for inflammatory bowel disease. The all-cash deal, offering $57 per share, represents a nearly 80% premium over Morphic’s closing price on Friday. The acquisition is expected to be finalized by the end of September.
Morphic, founded in 2015 and built around discoveries by immunologist Timothy Springer, focuses on developing oral drugs that inhibit integrins, proteins involved in inflammation and other body processes. The company has successfully raised funds from various investors, including venture arms of Pfizer and AbbVie, and went public in 2019. Morphic’s leading drug, MORF-057, is currently in mid-stage human trials for treating ulcerative colitis and Crohn’s disease, with positive early results for ulcerative colitis.
Analysts suggest that as an oral medication, MORF-057 could be more convenient for patients compared to Takeda Pharmaceutical’s Entyvio, which is administered via infusion or injection. This convenience could help MORF-057 capture market share from Entyvio if it gains approval. Entyvio generated approximately $5 billion in sales during Takeda’s last fiscal year.
