.png){kind=logo}
Eli Lilly agreed to buy Centessa Pharmaceuticals in a deal valued at about $6.3 billion upfront, with total consideration rising to as much as $7.8 billion if regulatory milestones are met. The transaction gives Lilly access to Centessa’s orexin agonist program, which targets narcolepsy and other conditions linked to excessive daytime sleepiness. The companies expect the deal to close in the third quarter, subject to shareholder and regulatory approval.
Eli Lilly said it will pay $38 per share in cash for Centessa Pharmaceuticals, valuing the company at about $6.3 billion. The agreement also includes up to $1.5 billion in additional payments if Centessa’s drug candidates meet certain approval targets set by US regulators.
The offer represents a 38% premium to Centessa’s closing price on Monday. After the announcement, Centessa shares jumped about 45%, while Lilly shares rose nearly 3%. Lilly said the acquisition is expected to close before October, pending approval from Centessa shareholders and regulators.
Centessa is a publicly traded biotechnology company with headquarters in Boston and the United Kingdom. The company does not yet have an approved drug on the market. Its lead program remains in mid-stage clinical testing, which means a commercial launch is still likely years away.
Centessa is developing orexin agonists, a class of drugs designed to promote wakefulness. These treatments target narcolepsy and idiopathic hypersomnia, two disorders that make it hard for patients to stay awake during the day. Drugmakers are also studying whether the same approach could help patients with other neurological conditions linked to drowsiness.
Lilly’s neuroscience unit described the science behind the acquisition in direct terms. “Orexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle,” said Dr. Carole Ho, president of Lilly Neuroscience.
The sleep disorder market has drawn growing industry interest. While older treatments mainly focused on helping patients sleep, newer drugs are being developed to improve daytime alertness. Analysts have said orexin agonists could reach a market value of $15 billion to $20 billion if use expands among eligible patients.
Centessa may not be the first company to launch a drug in this category. Takeda has a rival orexin agonist under review by the US Food and Drug Administration, and that treatment could receive approval later this year. Even so, Centessa’s mid-stage data has kept investor attention on its program.
Lilly has increased business development activity as revenue from Zepbound and Mounjaro strengthens its cash position. The company has said it plans to use proceeds from its obesity and diabetes medicines to support new bets across several treatment areas, including neuroscience.
This Centessa agreement follows other recent Lilly transactions. On Monday, InSilico announced a drug development deal with Lilly focused on artificial intelligence in drug discovery. Earlier this year, Lilly also moved to acquire companies working in cell therapy and inflammation.
Lilly has a long history in neuroscience. Prozac helped establish the company’s position in this field after its approval in 1987. More recently, Lilly launched Kisunla for early Alzheimer’s disease and continued research into treatments that may slow or prevent memory decline.
The Centessa deal adds another neuroscience asset to Lilly’s pipeline. It also shows that Lilly is using recent drug revenue to widen its portfolio beyond metabolic disease and into sleep-wake disorders and related brain conditions.
Also Read: FTSE 100 Live: Oil and Mining Stocks Lift Index as Pharma and Retail Drag
