Eli Lilly stock reaches record high after completing two acquisitions
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- Shares of Eli Lilly hit a record high after the company completed two acquisitions earlier this year.
- The deals expand Lilly’s reach into potential diabetes and obesity treatments
- Together, the two deals could be worth more than $2 billion, if certain conditions are reached.
Shares of Eli Lilly (LLY) reached an all-time high as the pharmaceutical company completed two acquisitions, one of which related to the hot market for weight-loss treatments.
The company said it completed the purchase of Versanis Bio in July, including its major asset, bimagrumab. Bimagrumab is in a Phase 2b study alone and in combination with the drug in Novo Nordisk (NVO) Ozempic and Wegovy for the treatment of overweight and obese adults.
The deal could value Versanis Bio up to $1.925 billion, depending on the achievement of certain development and sales milestones.
In a separate release, Lilly said it completed the acquisition of Sigilon Therapeutics in June. Sigilon focuses on medicines for a wide range of acute and chronic diseases, and has been working with Lilly since 2018 on treating patients with type 1 diabetes.
Sigilon investors receive $14.92 per share up front, and receive one right of contingent non-tradingable value (CVR) per share, which can be worth another $111.64 in cash. That makes the potential deal worth about $309.6 million, excluding shares owned by Lilly.
Eli Lilly’s shares were up 1.8% on Monday and are up about 50% so far this year.
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