March 31 (Reuters) – Eli Lilly said on Tuesday it would buy Centessa Pharmaceuticals in a deal valued at up to $7.8 billion as the U.S. drugmaker looks to diversify beyond its metabolic portfolio and expand into treatments for sleep disorders.
UK-based Centessa is developing treatments for excessive daytime sleepiness and other neurological conditions. Its lead therapy is currently in mid-stage studies for narcolepsy or excessive daytime sleepiness.
Lilly has offered $38 per share in cash, a premium of 37.8% to Centessa’s U.S.-listed stock’s last close. Centessa’s U.S.-listed shares jumped 46% in premarket trading.
Lilly has also offered one non-transferable contingent value right (CVR) of about $9 per share, or worth about $1.5 billion.
Centessa’s pipeline includes additional clinical and preclinical-stage treatments with potential to treat a broader range of neurological and neuropsychiatric conditions, the companies said.
The deal is expected to close in the third quarter.
Eli Lilly, which touched a trillion‑dollar valuation last year on the success of its blockbuster weight-loss treatments, has been making sizable investments to bolster other parts of its pipeline.
This year, the company has spent $2.4 billion to acquire Orna Therapeutics to expand its next‑generation cell therapy capabilities, and more than $1 billion to buy autoimmune drug developer Ventyx Biosciences.
(Reporting by Sneha S K in Bengaluru; Editing by Sriraj Kalluvila)
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