Eli Lilly to Buy Morphic for $3.2B

Eli Lilly to Buy Morphic for $3.2B
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The Facts

  • Pharmaceutical maker Eli Lilly is set to buy Morphic Holding, paying $3.2B in cash, to include the latter's inflammatory bowel disease (IBD) drugs in its portfolio.

  • Lilly, in a statement, said it's buying the Massachusetts-based biopharma firm, known for "developing oral integrin therapies for treatment of serious chronic diseases," because it could "open up new possibilities for earlier intervention" in relation to several gastroenterological diseases.

The Spin

Narrative A

This deal is a win-win for Morphic and the pharmaceutical industry as a whole. By acquiring Morphic, Lilly is showing it values its products and its focus on ingretin-based treatments for gastroenterological diseases. In addition, other companies developing ingretin-based treatments for various diseases are experiencing a boost in value.

Narrative B

This deal comes with risks for Lilly. Morphic has endured some disappointments over the past few years — including data that was less promising than expected from the testing of its lead drug, MORF-057. Other major pharmaceutical companies have severed ties with Morphic over various concerns. It remains to be seen if Lilly's takeover will produce positive results.

Metaculus Prediction

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