Eli Lilly has agreed to acquire US-based biopharmaceutical company Dermira in an all-cash transaction valued at around $1.1bn.
Based in Menlo Park of California, Dermira is involved in the development of novel therapies to treat patients with chronic skin conditions.
As per terms of the deal, Lilly will begin a tender offer to purchase all outstanding shares of Dermira for a price of $18.75 per share in cash.
Lilly Bio-Medicines president and Lilly senior vice president Patrik Jonsson said: “The acquisition of Dermira is consistent with Lilly’s strategy to augment our own internal research by acquiring clinical phase assets in our core therapeutic areas and leveraging our development expertise and commercial infrastructure to bring new medicines to patients.”
The acquisition of Dermira will help Lilly to expand its immunology pipeline with the addition of novel, investigational and monoclonal antibody lebrikizumab.
Lebrikizumab is being assessed in a phase 3 clinical development programme to treat moderate-to-severe atopic dermatitis in adolescent and adult patients aged between 12 years and older.
In December 2019, Dermira secured fast track designation from the US Food and Drug Administration.
The acquisition will also add Eli Lilly with Qbrexza (glycopyrronium) cloth, which is approved by the FD as the topical treatment for primary axillary hyperhidrosis.
Subject to customary closing conditions, the deal is expected to be completed by the end of the first quarter of 2020.
Dermira chairman and CEO Tom Wiggans said: “We are pleased that Lilly has recognized the progress we have made and the opportunities for lebrikizumab and QBREXZA.
“We share with Lilly a common interest in helping patients through the development of innovative treatments and believe that patients and physicians will benefit from the resources that Lilly can bring to maximize the potential of our programs.”
In January 2019, Eli Lilly agreed to acquire Connecticut-based biopharmaceutical company Loxo Oncology in an all-cash deal worth $8bn.
Loxo Oncology is engaged in the development and commercialisation of highly selective drug candidates for patients with genomically defined cancers.