INDIANAPOLIS (TIP): In a landmark deal poised to reshape the landscape of chronic disease treatment, pharmaceutical giant Eli Lilly and Company has announced its acquisition of Morphic Therapeutic Inc.
The acquisition, valued at approximately $3.2 billion, is set to bolster Eli Lilly’s portfolio with groundbreaking oral integrin therapies, specifically targeting inflammatory bowel disease (IBD) and other serious chronic conditions.
Morphic, headquartered in Waltham, Massachusetts, has garnered attention for its innovative approach to integrin therapies. The company’s lead program, MORF-057, is a selective oral small molecule inhibitor of α4β7 integrin, currently in Phase 2 trials for ulcerative colitis and Crohn’s disease. This promising therapy aims to improve patient outcomes and expand treatment options for those suffering from IBD, offering a potential shift towards earlier intervention and combination therapies.
At the helm of Morphic Therapeutic is its Indian American CEO Dr. Praveen Tipirneni, a distinguished figure in the biopharmaceutical sector.
“Oral therapies could open up new possibilities for earlier intervention in diseases like ulcerative colitis, and also provide the potential for combination therapy to help patients with more severe disease,” said Dr. Daniel Skovronsky, Chief Scientific Officer of Lilly and President of Lilly Research Laboratories. “We are eager to welcome Morphic colleagues to Lilly as this strategic transaction reinforces our commitment to developing new therapies in the field of gastroenterology, where Lilly has made significant investments to deliver first-in-class molecules for the benefit of patients.”
Dr. Tipirneni, who has been the CEO of the company since 2015, echoed this sentiment, highlighting the synergy between Morphic’s innovative platform and Lilly’s extensive resources and commitment to inflammation and immunology. “Morphic has always believed that the immense potential of MORF-057 to benefit patients suffering from IBD could be optimized by the ideal strategic partner. Lilly brings unparalleled resources and commitment to the inflammation and immunology field,” he stated. He also expressed gratitude towards the Morphic team, investigators, and patients who have contributed to the success of their programs.
Under the terms of the agreement, Lilly will initiate a tender offer to acquire all outstanding shares of Morphic for $57 per share in cash. This offer represents a premium of approximately 79.0% to the closing stock price on July 5, 2024, and 87.2% to the 30-day volume-weighted average trading price of Morphic’s common stock. The transaction, approved by the boards of directors of both companies, is expected to close in the third quarter of 2024, pending customary closing conditions.
Citi is serving as the exclusive financial advisor for Lilly, with Kirkland & Ellis LLP providing legal counsel. For Morphic, Centerview Partners LLC is acting as the exclusive financial advisor, with additional advice from Evercore Group L.L.C. and legal counsel from Fenwick & West LLP.
Before leading Morphic, Tipirneni served as Senior Vice President of Corporate Development and Global Strategy at Cubist Pharmaceuticals, where he played a crucial role in the development and success of key clinical programs. His efforts were instrumental in Cubist’s acquisition by Merck in 2015.
Dr. Tipirneni’s diverse background spans roles in corporate strategy at Sun Microsystems and Covad Communications, as well as business development at Deltagen. His academic credentials are equally impressive, with a mechanical engineering degree from MIT, an MD from McGill University, and an MBA from Wharton School of Business in healthcare finance. Additionally, he has served as a 1st Lieutenant in the U.S. Army.