David Ricks, CEO, Eli Lilly
Scott Mlyn | CNBC
Eli Lilly on Tuesday said it struck a $2.4 billion deal to accumulate Dice Therapeutics in a bid to bulk up its treatment portfolio for immune-related diseases.
Eli Lilly can pay $48 per share in money to purchase Dice, representing around a 40% premium to where the San Francisco-based company‘s shares closed on Friday. The transaction is predicted to shut within the third quarter of this yr.
Eli Lilly’s stock price rose greater than 1% in early morning trading. Dice Therapeutics’ share price jumped greater than 37% to just below the acquisition price.
“Together with its novel technology and expertise in drug discovery, DICE’s talented workforce and fervour for innovation will enhance our efforts to make life higher for people living with devastating autoimmune diseases,” said Patrik Jonsson, Eli Lilly executive vice chairman, in a press release.Â
Dice is a biopharmaceutical company that uses a proprietary technology platform to develop latest oral therapeutic drugs for autoimmune diseases, by which the body’s immune system mistakenly attacks an individual’s own cells as an alternative of protecting them.
Auto-immune diseases can causes pain, fatigue, dizziness, depression and rashes, amongst other symptoms.
There are greater than 100 known autoimmune diseases, including lupus, rheumatoid arthritis, Crohn’s disease and ulcerative colitis.
Dice’s lead drug is in a mid-stage trial for an immune-related skin condition called psoriasis.Â
Eli Lilly’s immunology portfolio includes drugs like Taltz, which treats plaque psoriasis, and Olumiant, a treatment for rheumatoid arthritis. Last yr, Taltz raked in $2.48 billion, while Olumiant generated $830.5 million in sales.
