Eli Lilly and Company has announced a definitive agreement to acquire Ventyx Biosciences for approximately $14.6 billion. The deal, expected to close in the second half of 2024, will strengthen Lilly’s portfolio in oral therapies for inflammatory-mediated diseases.
Ventyx Biosciences, founded in 2016, focuses on developing novel, oral therapies for autoimmune and inflammatory conditions. The company’s lead candidate, VX-583, targets tyrosine kinase 2 (TYK2) inhibitors, a promising area in treating diseases like psoriasis, psoriatic arthritis, and lupus.
Lilly, a leader in biopharmaceuticals, has been expanding its inflammatory disease portfolio through acquisitions and partnerships. The company’s Janssen collaboration and Taltz (ixekizumab) have been key growth drivers in dermatology and rheumatology.
The acquisition will give Lilly full control over Ventyx’s pipeline, including VX-583, which is in Phase 2b clinical trials for psoriasis. Additionally, Ventyx’s VX-760 (anti-IL-17A) and VX-548 (oral JAK3 inhibitor) are in early-stage development for autoimmune diseases.
Lilly will pay $273 per share, a 12% premium over Ventyx’s closing price on May 3, 2024. The deal includes a potential $3.5 billion in milestones, contingent on future drug approvals.
This acquisition positions Lilly as a stronger competitor in the inflammatory disease market, currently dominated by companies like AbbVie, Pfizer, and Johnson & Johnson. Patients with psoriasis, lupus, and rheumatoid arthritis may soon have access to more oral treatment options.
For Ventyx shareholders, the deal provides immediate liquidity, while Lilly gains a pipeline of innovative therapies. The transaction is expected to be accretive to Lilly’s earnings in 2025, with full integration by 2026.
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Lilly plans to complete regulatory reviews and close the deal by mid-2024. Post-acquisition, Ventyx’s San Diego-based R&D team will integrate into Lilly’s operations, ensuring a smooth transition.
The acquisition signals Lilly’s commitment to advancing oral therapies in inflammatory diseases, potentially reshaping the landscape of autoimmune treatment. Investors and patients alike will be watching for Phase 3 trial results for VX-583 and other pipeline candidates.
