Eli Lilly bets big on sleep disorders and AI with $9B in new deals
Eli Lilly has announced two major deals aimed at expanding its drug development efforts. The company will acquire Centessa Pharmaceuticals for $6.3 billion in cash, while also forming a $2.75 billion partnership with Insilico Medicine. Both moves signal a push into new therapeutic areas, including sleep-wake disorders and AI-driven treatments.
The acquisition of Centessa Pharmaceuticals will cost Eli Lilly $38 per share, totalling around $6.3 billion. Shareholders may receive an extra $9 per share through a contingent value right (CVR), potentially raising the deal's value to $7.8 billion. Centessa's shares reacted strongly, jumping 46% in U.S. premarket trading and rising sharply in Frankfurt as well.
Centessa's pipeline includes orexin receptor agonists, experimental drugs designed to treat narcolepsy and excessive daytime sleepiness. This marks Eli Lilly's first foray into the sleep-wake disorder market. No details on Centessa's employee numbers before the takeover were disclosed. Separately, Eli Lilly has partnered with Insilico Medicine in a $2.75 billion agreement. The deal focuses on licensing and developing drugs identified through Insilico's AI-powered computational platform. The collaboration aims to accelerate the discovery of new treatments using artificial intelligence. Eli Lilly's shares edged up by about 1% on Tuesday morning following the announcements of both transactions.
The Centessa acquisition and Insilico partnership position Eli Lilly in two growing fields: sleep-wake disorders and AI-assisted drug development. The deals add new therapies to its pipeline while leveraging advanced technology for future treatments. Both transactions are expected to shape the company's research and commercial strategy in the coming years.
