Lilly to Acquire Merida Biosciences for Antibody-Degradation Technology
Through this acquisition, Eli Lilly will strengthen its immunology capabilities by gaining access to a first-in-class antibody-degradation platform that has been designed to remove disease-causing antibodies.
Eli Lilly looks to expand its immunology pipeline having agreed to acquire U.S. biotech, Merida Biosciences, in an all-cash deal worth up to USD 2.875 billion. The transaction, which includes an upfront payment and milestone-based consideration, is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary conditions (1).
Merida’s precision antibody-degradation technology is being developed for autoimmune and allergic diseases in which pathogenic antibodies are central to disease progression. Unlike existing treatments that broadly suppress immune activity, Merida’s biologics are engineered to selectively degrade harmful autoantibodies while preserving normal immune function. Lilly believes the approach could address the underlying biological drivers of disease across a range of immune-mediated conditions with significant unmet need.
Merida’s lead asset, MER511, is currently in Phase I development for autoimmune disorder Graves’ disease, and related inflammatory condition, thyroid eye disease (TED), both driven by thyroid-stimulating immunoglobulins that activate the thyroid-stimulating hormone receptor. Initial Phase I data showed robust reductions in pathogenic antibodies alongside a favorable initial safety profile, offering a more targeted alternative to existing approaches that do not directly neutralize the disease-causing autoantibodies.
"Merida was founded to fundamentally change how autoimmune and allergic diseases are treated, by targeting the antibodies driving them directly, rather than suppressing the immune system broadly,” said Adam Townsend, Chief Executive Officer of Merida, in a press release about the acquisition (1). “[This] announcement reflects the hard work of the entire Merida team, and joining Lilly gives our science the resources and commitment to realize its potential for patients with immune-mediated conditions."
Beyond Graves’ disease and TED, Merida is developing MER769, a preclinical candidate for food allergy, asthma, chronic spontaneous urticaria and other conditions driven by immunoglobulin E antibodies. The company’s earlier-stage pipeline also includes programs for kidney diseases, including membranous nephropathy, and other immune-mediated disorders.
"We're building our pipeline around therapies that meaningfully change the course of disease, not just its downstream effects. Merida's lead program is designed to do exactly that: selectively and directly eliminating the autoantibodies causing Graves' disease and thyroid eye disease, while preserving normal immune function,” added Francisco Ramírez-Valle, M.D., Ph.D., Senior Vice President, Lilly Immunology Research and Early Clinical Development, in the press release (1). "We see potential to apply this precision approach across a broad range of antibody-driven diseases, and we look forward to advancing this novel technology working with the Merida team."
For Lilly, the acquisition strengthens its immunology portfolio with a differentiated modality that could alter disease course rather than manage downstream symptoms. The deal gives Lilly control over a platform with potential applications across multiple antibody-driven diseases, supporting its strategy to build a broader presence in immunology alongside its established franchises in diabetes, obesity and oncology.
Reference
Lilly. Lilly to Acquire Merida Biosciences to Advance Treatments for Serious Autoimmune and Allergic Diseases. Press Release, Aug. 31, 2026.