Lilly Buys Centessa for $7.8B, Eyes Sleep Drug
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Eli Lilly Acquires Centessa Pharmaceuticals for $7.8 Billion, Aiming to Combat Excessive Daytime Sleepiness
Eli Lilly has made a significant move in the pharmaceutical industry by acquiring Centessa Pharmaceuticals for $7.8 billion. This deal includes a $6.3 billion upfront payment at $38 per share, a 38% premium, along with an additional $1.5 billion in milestone payments if the drugs receive FDA approval on time. The acquisition is expected to close in the third quarter, pending approvals.
Centessa Pharmaceuticals specializes in developing experimental drugs for treating excessive daytime sleepiness, a condition that affects individuals with narcolepsy. The drugs could also potentially address drowsiness caused by Alzheimers, depression, and other neurological issues. Lillys neuroscience boss described the acquisition as a master switch for the sleep-wake cycle, highlighting Centessas robust pipeline.
The news of the acquisition sent Centessa shares soaring by 45%, while Lillys stock climbed by 3%. Investors are optimistic about the potential of this space, particularly given Lillys impressive track record, including the development of Prozac in 1987 and their recent Alzheimers early-stage drug, Kisunla.
Takedas rival orexin agonist is currently under FDA review and may hit the market later this year. However, Centessas drug is not far behind, with analysts predicting FDA approval around 2028 based on strong mid-stage data.
This acquisition is part of Lillys ongoing buying spree this year, as they also aim to acquire cell therapy from Orna Therapeutics and inflammation drugs from Ventyx Biosciences. These strategic moves position Lilly as a key player in the next wave of brain health breakthroughs.
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