Eli Lilly will spend nearly $2.4 billion to acquire Dice Therapeutics to create more drugs to combat autoimmune diseases.
American pharmaceutical company Eli Lilly has announced that it intends to buy biopharmaceutical company Dice Therapeutics. Eli Lilly hopes the $2.4 billion deal will help the company develop more drugs to treat immune diseases.
According to the official press release From both companies, Eli Lilly will purchase all outstanding Dice shares via a tender offer. Already approved by both boards of directors, the deal will price each share at $48, to approximately $2.4 billion. The agreement also allows Eli Lilly’s second-step merger to purchase any Dice shares not included in the tender offer. The second step is subject to successful closing of the bid offer, which is dependent on expected closing conditions, such as an official antitrust clearance.
Terms of the Eli Lilly and Dice deal
The press release also states other terms of the agreement. For example, the deal allows Eli Lilly to choose whether the agreement is an asset acquisition or a business combination. Moreover, according to the agreement, the deal is likely to close in the third quarter of 2023 since there are no financing terms required.
Speaking about the deal, Dice Therapeutics CEO Kevin Goodes said the company is keen for its products to benefit from the resources offered by Eli Lilly. Giudice also said there is great potential as both companies embark on a “unified pursuit of scientific innovation.”
For Eli Lilly’s Executive Vice President Patrick Johnson, the partnership between the two companies will greatly help people with health related challenges. Johnson said:
“Combined with new technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will power our efforts to make life better for people with devastating autoimmune diseases. We welcome DICE colleagues at Lilly, and together we can tackle the challenges ahead in finding new therapies for patients with special needs. Big unmet medical.
Founded in 1876, Eli Lilly has developed medicines and diagnostics that help treat many diseases, including cancer and diabetes. Its portfolio contains drugs that treat diseases in the areas of neurodegeneration, immunology, neuroscience, and cardiovascular disorders.
Common Eli Lilly medications include Taltz and Olumiant. Last year, Taltz, a treatment for psoriasis and psoriatic arthritis, brought Eli Lilly $2.48 billion. Olumiant, which treats rheumatoid arthritis, pulled in $830.5 million in sales in 2022 as well.
To grow its portfolio and expand its offering, Eli Lilly is already investing in artificial intelligence (AI). The company is also studying its benefits in drug discovery. Talk to Business InsiderDavid Ricks, CEO of Eli Lilly, believes AI is “one of the most exciting technological movements” in a while. A company spokesperson said the company is investing in machine learning and artificial intelligence in several endeavors. Some of them include drug discovery, bot journalism automation, natural language generation, and chatbots.
For drug discovery, Ricks also said that AI will help Eli Lilly automate certain normal business processes. According to him, doing so would help “increase human productivity”.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not in the depths of cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.