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Eli Lilly said on \u200cMonday it would acquire privately held Merida Biosciences for up to $2.88 billion in cash, strengthening its immunology portfolio with an experimental treatment for thyroid-related autoimmune conditions.<\/strong><\/p>\n Lilly has been on an acquisition spree following windfall \u200bprofits from the success of its weight-loss drugs. Its deal spending in 2026 has outpaced \u200bthat in the prior years, as the pharma giant aims to \u2060expand beyond obesity and diabetes.<\/p>\n Merida is developing a new class of precision therapeutics \u200bto selectively target antibodies that cause a range of immunity-related conditions. Its lead drug \u200bcandidate, MER511, is in the early stage of development for autoimmune disorders such as Graves\u2019 disease and thyroid eye disease.<\/p>\n \u201cWe\u2019re building our pipeline around therapies that meaningfully change the course of disease, not \u200bjust its downstream effects,\u201d said Francisco Ram\u00edrez-Valle, senior vice president, Lilly immunology research \u200band early clinical development. \u201cMerida\u2019s lead program is designed to do exactly that.\u201d<\/p>\n Lilly said the deal for \u200cMerida includes \u2060an upfront amount and payments contingent on meeting certain milestones, but did not disclose the details. The company expects the transaction to close in the fourth quarter.<\/p>\n We see this acquisition as further evidence of management\u2019s intent to diversify Lilly\u2019s pipeline beyond obesity, \u200bsaid Leerink Partners \u200banalyst David Risinger.<\/p>\n Graves\u2019 disease \u2060causes an overactive thyroid gland to produce excess hormone, while thyroid eye disease is a condition that can cause inflammation, eye bulging, double \u200bvision and vision impairment.<\/p>\n Lilly said initial data showed MER511 substantially \u200blowered the \u2060thyroid-stimulating antibodies linked to the diseases, while showing a favorable initial safety profile.<\/p>\n Treatments for Graves\u2019 disease currently include antithyroid medications, radioactive iodine and surgery, while there are two FDA-approved medicines for thyroid eye disease: Amgen\u2019s\u00a0\u2060Tepezza and \u200bViridian Therapeutics\u2019\u00a0Lumvoa.<\/p>\n Merida\u2019s pipeline also includes MER769, an \u200bexperimental treatment for food allergy, asthma and other allergic diseases, along with earlier-stage programs for kidney and other \u200bimmune-mediated conditions.<\/p>\n<\/div>\n