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Merida'santibody-engineering platform is designed to enable precise, durable removal of disease-causing antibodies, while preserving normal immune function
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Initial Phase 1 data show MER511 achieved robust reductions in pathogenic thyroid-stimulating antibodies with a favorable initial safety profile
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Acquisition strengthensLilly's immunology capabilities and its opportunity to elevate the standard of care for immune-mediated conditions with high unmet need
INDIANAPOLISandCAMBRIDGE, Mass., Aug. 31, 2026 /PRNewswire/ --Eli Lilly and Company(NYSE: LLY) andMerida Biosciences, Inc.(Merida), a biotechnology company advancing a new class of precision therapeutics for serious autoimmune and allergic diseases, today announced a definitive agreement forLillyto acquireMerida.
Meridais developing biologics engineered to selectively degrade pathogenic autoantibodies, the disease-causing agents behind a range of immune-mediated conditions. The precision degradation approach is intended to address the biological cause of these diseases, rather than broadly suppressing the immune system, as many current therapies do.
Merida'slead program, MER511, is in Phase 1 development for Graves' disease and thyroid eye disease (TED), conditions driven by thyroid-stimulating immunoglobulins, which are autoantibodies that activate the thyroid-stimulating hormone receptor. Graves' disease affects approximately 3 million people in theU.S., and patients face elevated cardiovascular risk and mortality. Roughly 25 to 40 percent of people with Graves' disease go on to develop TED, which can cause pain, disfigurement, and in severe cases, vision loss. While there are approved treatments for both conditions, none directly target the autoantibodies that cause them. Because pathogenic autoantibodies drive a wide range of serious diseases,Merida'splatform has potential application well beyond its lead program. The company's pipeline also includes MER769, a preclinical program focused on food allergy, asthma, chronic spontaneous urticaria and other diseases driven by the antibody responsible for triggering allergic reactions, along with earlier-stage programs in kidney diseases such as membranous nephropathy and other immune-mediated conditions.
"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects.Merida'slead program is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves' disease and thyroid eye disease, while preserving normal immune function, with initial Phase 1 data already pointing to the potential for improved efficacy and safety," said Francisco Ramírez-Valle, M.D., Ph.D., senior vice president,Lillyimmunology research and early clinical development. "We see potential to apply this precision approach across a broad range of antibody-driven diseases, and we look forward to advancing this novel technology working with theMeridateam."
"Meridawas founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly. Under our CSO and founderDario Gutierrez'sscientific leadership, our team has advanced that idea from concept to clinical data, and what we've seen so far reinforces our conviction that this approach can make a meaningful difference for patients," saidAdam Townsend, chief executive officer ofMerida. "Today's announcement reflects the hard work of the entireMeridateam, and joiningLillygives our science the resources and commitment to realize its potential for patients with immune-mediated conditions."
Under the terms of the agreement,Lillywill acquireMeridaand pay up to$2.875 billionin cash, inclusive of an upfront payment, and contingent milestone payments.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2026.Lillywill determine the accounting treatment of this transaction in accordance with Generally Accepted Accounting Principles (GAAP) upon closing. This transaction will thereafter be reflected inLilly's financial results and financial guidance.
Ropes & Gray LLPis acting as legal counsel toLilly.Centerview Partners LLCis acting as an exclusive financial advisor, andGoodwin Procter LLPis acting as legal counsel toMerida.
About Lilly
Lillyis a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. F-LLY
About Merida Biosciences
Merida is advancing a precision immunology approach for antibody-driven diseases that selectively and durably eliminate their pathogenic drivers. This approach, enabled by advances in protein engineering and immunology, has the potential to address numerous autoimmune and allergic conditions that are inadequately treated today.