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Eli Lilly to pay USD 1.1bn for Dermira
Posted on Friday, 10 January 2020 13:27
US-based pharmaceutical group Eli Lilly and Company has agreed to pick up skincare-focused biopharmaceutical player Dermira for USD 1.10 billion to expand its immunology pipeline.

Under the terms of the agreement, the acquiror is offering USD 18.75 per item of stock held in cash, representing a slight increase to yesterday’s close of USD 18.34 and a premium of 86.0 per cent over the 60-day volume weighted average trading price to 9th January 2020.

The deal is not subject to any financing condition and is expected to close by the end of the first quarter of 2020, following the green light from regulators and the majority of security holders.

Eli Lilly plans to acquire any shares not tendered in the offer via a second-step merger at the same price.

The target will be reflected in the buyer’s financial results and 2020 guidance according to generally accepted account principles.

Eli Lilly will update on the expected earnings, including the impact of the acquisition, as part of its fourth-quarter and full-year 2019 announcement, scheduled on 30th January 2020.

Dermira owns lebrikizumab, a novel, investigative monoclonal antibody designed to bind IL-13 with high affinity, which is being evaluated in a Phase 3 clinical trial for the treatment of moderate-to-severe atopic dermatitis in adolescent and adult patients.

The candidate was granted fast track from the US Food and Drug Administration (FDA) in December.

Eli Lilly is also expecting the addition of Dermira to expand its portfolio of marketed dermatology medicines with the addition of QBREXZA cloth, a medicated cloth already approved by the FDA for the topical treatment of primary axillary hyperhidrosis, otherwise known as excessive uncontrolled underarm sweating.

The business generated total revenue of USD 80.63 million in the nine months to 30th September 2019, double the USD 40.10 million recorded in the corresponding period of 2018.

Net loss narrowed slightly to USD 140.42 million in the same timeframe (Q1-3 2018: USD 149.73 million).

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