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(Sharecast News) - Eli Lilly said on Tuesday that it has agreed to buy Centessa Pharmaceuticals, a clinical-stage company developing a new class of medicines for the treatment of excessive daytime sleepiness, for up to $7.8bn.
Centessa is developing a new class of potential therapies within its orexin receptor 2 (OX2R) agonist program for the treatment of excessive daytime sleepiness, impaired attention, cognitive deficits and fatigue across neurological, neurodegenerative and neuropsychiatric disorders.
Under the terms of the deal, Lilly will pay $38 per share in cash plus one non-transferrable contingent value right that entitles the holder to receive up to $9 subject to the achievement of three milestones.
The upfront cash consideration represents an aggregate equity value of about $6.3bn and the CVR represents about $1.5bn.
Carole Ho, executive vice president and president, Lilly Neuroscience, said: "Orexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle.
"Centessa has assembled a portfolio with the breadth and depth to improve wakefulness across a broad array of indications. Joining forces with Centessa colleagues means we can now pursue that potential at the speed and scale it deserves."
Mario Alberto Accardi, PhD, chief executive officer of Centessa and founder of the Orexin Program, said: "Centessa is at the forefront of orexin science, and we've built a potential best-in-class portfolio of OX2R agonists with a level of depth and breadth that could help redefine what's possible in neuroscience.
"Driven by a bold vision, our team has advanced an innovative portfolio with the speed, rigor and conviction needed to lead a new era of orexin-based therapeutics. Now, we are thrilled to take our next step toward a potential combination with Lilly who shares our vision."
At 1617 BST, Centessa shares were up 45% at $40.00. Lilly shares were 3.2% higher at $914.66.
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