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Lilly Completes Acquisition of Versanis Bio Eli Lilly and Company (NYSE: LLY) today announced the successful completion of its acquisition of Versanis Bio. The acquisition expands Lilly's...

Key Takeaway: Eli Lilly and Company has successfully completed its acquisition of Versanis Bio, which strengthens Lilly's portfolio by including bimagrumab, currently in a Phase 2b study for obesity treatments. The acquisition is anticipated to yield significant advancements in cardiometabolic disease therapies, as noted by Lilly executives. Notably, the deal involves potential payments totaling up to $1.925 billion based on development milestones. However, the announcement also highlights various risks associated with drug development and the potential impact on financial outcomes.

Market Sentiment Analysis

POSITIVE FACTORS

  • Lilly's acquisition of Versanis Bio enhances its portfolio.
  • Bimagrumab may provide innovative treatments for cardiometabolic diseases.
  • Collaboration will leverage Versanis' expertise to advance research and development.

CONCERNS & RISKS

  • There are inherent risks and uncertainties in drug research and development.
  • No guarantee that the expected benefits of the acquisition will be realized.
  • Potential disruption to current plans and operations might affect employee retention.

Full Press Release Details

INDIANAPOLIS , Aug. 14, 2023 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY ) today announced the successful completion of its acquisition of Versanis Bio. The acquisition expands Lilly's portfolio to include Versanis' lead asset, bimagrumab, which is currently being assessed in a Phase 2b study alone and in combination with semaglutide in adults living with overweight or obesity.
"Combining our current incretin portfolio, including tirzepatide, with activin receptor blockers such as bimagrumab, could be the next major step in innovative treatments for those living with cardiometabolic diseases, like obesity," said Ruth Gimeno , Ph.D., group vice president, diabetes, obesity and cardiometabolic research at Lilly. "The wealth of knowledge that our new colleagues from Versanis will bring to Lilly will propel our research and development efforts forward, ultimately benefiting patients around the world."
Under the terms of the agreement, Versanis shareholders could receive up to $1.925 billion in cash, inclusive of the upfront payment and subsequent payments upon achievement of certain development and sales milestones.
For Lilly, Kirkland & Ellis LLP is acting as legal counsel. For Versanis, Goodwin Procter LLP is acting as legal counsel, Cooley LLP is advising as to patent matters, and J.P. Morgan and Company is acting as financial advisor.
Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements regarding Lilly's acquisition of Versanis, regarding the companies' product candidates and ongoing clinical and preclinical development, and regarding the accounting treatment of the potential acquisition under GAAP and its potential impact on Lilly's financial results and financial guidance. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Forward-looking statements reflect current beliefs and expectations; however, these statements involve inherent risks and uncertainties, including with respect to drug research, development and commercialization, Lilly's evaluation of the accounting treatment of the acquisition and its potential impact on its financial results and financial guidance, relationships with key third parties or governmental entities, and risks that the acquisition disrupts current plans and operations or adversely affects employee retention, potentially diverting management's attention from Versanis' ongoing business operations. Actual results could differ materially due to various factors, risks and uncertainties. Among other things, there can be no guarantee that Lilly will realize the expected benefits of the acquisition, that product candidates will be approved on anticipated timelines or at all, that any products, if approved, will be commercially successful, that Lilly's financial results will be consistent with its expected 2023 guidance or that Lilly can reliably predict the impact of the acquisition on its financial results or financial guidance. For further discussion of these and other risks and uncertainties, see Lilly's most recent Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission (the "SEC"). Except as required by law, neither Lilly nor Versanis undertakes any duty to update forward-looking statements to reflect events after the date of this press release.
Refer to: Jordan Bishop; [email protected] ; 317-473-5712 (Media)
Joe Fletcher; [email protected] ; 317-296-2884 (Investors)
SOURCE Eli Lilly and Company

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Frequently Asked Questions

What did Eli Lilly acquire recently?

Eli Lilly acquired Versanis Bio to enhance its portfolio.

What is bimagrumab being tested for?

Bimagrumab is being evaluated in a Phase 2b study for obesity.

How much could Versanis shareholders receive?

Versanis shareholders could get up to $1.925 billion in cash.

What is the significance of the acquisition?

It may advance treatments for cardiometabolic diseases like obesity.

Who is Lilly's legal counsel for the acquisition?

Kirkland & Ellis LLP is serving as Lilly's legal counsel.

Last updated: Aug 14, 2023