Eli Lilly will spend about $2.4 billion to acquire Dice Therapeutics to make more drugs to combat autoimmune diseases.
american pharmaceutical company Eli Lilly has announced that it is set to buy biopharma company Dice Therapeutics. Eli Lilly hopes the $2.4 billion deal will help the company develop more drugs to treat immune diseases.
according to an official Press release From both the companies, Eli Lilly will buy all the outstanding shares of Dice through a tender offer. Already approved by both boards of directors, the deal will be worth $48 each share, for a total of about $2.4 billion. The agreement also allows for Eli Lilly to purchase any Dice shares in the second phase of the merger that are not included in the tender offer. The second phase is subject to the successful completion of the tender offer, which is subject to expected closing conditions, such as an official antitrust clearance.
Eli Lilly and Dice deal terms
Other terms of the agreement are also mentioned in the press release. For example, the deal allows Eli Lilly to choose whether the agreement is an asset acquisition or a business merger. Furthermore, according to the agreement, the transaction is expected to close in the third quarter of 2023 as no financial conditions are required.
Speaking on the deal, Kevin Judis, CEO of Dice Therapeutics, said the company is eager to leverage its products to benefit from the resources offered by Eli Lilly. Judis also said there is great potential as the two companies begin a “united pursuit of scientific innovation.”
For Patrik Jonsson, executive vice president of Eli Lilly, the partnership between the two companies will greatly help people with related health challenges. Johnson said:
“Combined with its innovative technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will enhance our efforts to improve life for people living with devastating autoimmune diseases. We welcome DICE’s partners in Lille to And together, we can meet the challenges ahead in finding new treatments for patients who have unmet critical medical needs.
Founded in 1876, Eli Lilly develops drugs and diagnostics that help treat many diseases, including cancer and diabetes. Its portfolio includes drugs that tackle disease in the areas of neurodegeneration, immunology, neuroscience and cardiovascular disorders.
Common Eli Lilly drugs include Taltz and Olumiant. Last year, Taltz gave $2.48 billion to Eli Lilly for a treatment for plaque psoriasis and psoriatic arthritis. Olumiant, which treats rheumatoid arthritis, also projects sales of $830.5 million in 2022.
Eli Lilly is already investing in Artificial Intelligence (AI) to enhance its portfolio and expand offerings. The company is also studying its benefits for drug discovery. Talking to Business InsiderEli Lilly CEO David Ricks believes AI is “one of the most exciting tech moves” in a while. A spokesperson said the company is investing in machine learning and AI across multiple initiatives. Some of these include drug discovery, robotic-press automation, natural-language generation, and chatbots.
For drug discovery, Ricks also said AI would help Eli Lilly automate typical mundane business processes. According to him, doing so would help “increase human productivity”.
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