INDIANAPOLIS/CAMBRIDGE, Mass. — Eli Lilly is set to acquire biotechnology startup Merida Biosciences for up to $2.875 billion in cash, marking the pharmaceutical giant’s 13th acquisition of 2026 as it accelerates efforts to expand beyond its blockbuster obesity and diabetes medicines.
The deal, announced Monday, will give Lilly access to Merida’s experimental therapies aimed at autoimmune and allergic diseases. The transaction includes an upfront cash payment as well as additional payments tied to the achievement of specified development milestones. It is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.
A New Bet on Autoimmune Disease
Cambridge, Massachusetts-based Merida was launched in 2025 with $121 million in Series A financing, backed by investors including Bain Capital Life Sciences, BVF Partners and Third Rock Ventures. The company is developing a precision biologic approach designed to selectively eliminate disease-causing autoantibodies while preserving normal immune-system function.
Its lead candidate, MER511, is currently in Phase 1 development for Graves’ disease and thyroid eye disease (TED). Both conditions are associated with antibodies that stimulate the thyroid-stimulating hormone receptor, contributing to abnormal thyroid activity and, in the case of TED, inflammation and tissue damage around the eyes.
Early clinical data have shown reductions in the relevant autoantibodies alongside a favorable safety profile, according to reporting on the transaction.
Merida is also developing MER769, an experimental program aimed at allergic diseases including food allergies and asthma, along with earlier-stage programs targeting other immune-mediated conditions.
Lilly’s Acquisition Spree Continues
The Merida transaction underscores the pace at which Lilly has been expanding its pipeline this year. Flush with cash generated by demand for its medicines such as Mounjaro and Zepbound, the company has pursued acquisitions across oncology, neuroscience, inflammation, genetic medicine and immunology.
Lilly’s recent deals have included the acquisition of AtaiBeckley for an initial $2.8 billion and agreements involving vaccine developers worth nearly $4 billion combined. The company has also pursued biotech companies including Kelonia Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, Orna Therapeutics and Ventyx Biosciences.
The Merida deal would bring Lilly’s announced acquisition tally for 2026 to 13, according to reports.
The company’s buying spree reflects a broader strategy: use the enormous commercial success of its obesity and diabetes portfolio to build new sources of growth before those franchises mature.
Why MER511 Matters
The appeal of Merida goes beyond adding another experimental drug to Lilly’s pipeline. Its platform is designed around selective autoantibody degradation, potentially allowing physicians to target the antibodies driving a particular disease without broadly suppressing the immune system.
That approach could offer a different path from conventional immunosuppressive treatments, particularly for diseases in which a specific pathogenic antibody is a major driver.
For Lilly, the opportunity comes with substantial clinical risk. MER511 remains in the early stages of human testing, meaning its ultimate effectiveness, safety and commercial potential have yet to be established.
Still, the acquisition gives Lilly an entry point into a potentially broad therapeutic platform rather than a single late-stage drug.
Deal Expected to Close Later This Year
Lilly said it will pay Merida up to $2.875 billion, with the final value dependent in part on the achievement of development milestones. The companies expect the transaction to close during the fourth quarter of 2026 after required regulatory and other approvals.
The acquisition illustrates how aggressively major pharmaceutical companies are competing for promising biotechnology assets. For Lilly, it also signals that the company’s growth ambitions extend well beyond its hugely successful weight-loss franchise.
With Merida’s autoimmune platform now potentially joining its pipeline, Lilly is betting that the next major opportunity may lie in precisely targeting the biological mechanisms that cause autoimmune disease.