Eli Lilly on Tuesday announced plans to acquire three companies for almost $4 billion in cash, as it looks to expand its research and development business into infectious diseases.
The company said it had agreed deals to buy Curevo, LimmaTech Biologics and Vaccine Company for $1.5 billion, $780 million and $1.55 billion, respectively.
Shares of Eli Lilly rose 0.9% shortly after the market opened.
“These acquisitions reflect a deliberate strategy to prevent disease at its source rather than treat its consequences,” Daniel M. Skovronsky, chief scientific and product officer and president, said in a statement.
Curevo has developed a vaccine for the prevention of shingles in adults and was specifically engineered with a synthetic adjuvant to increase immune system tolerability and reduce side effects.
LimmaTech aims to tackle bacterial pathogens, including sexually transmitted infections like Neisseria gonorrhoeae and chlamydia trachomatis, where there’s increased antimicrobial drug resistance.
The Vaccine Company is developing In Vivo Nanoparticle (IVN) technologies that utilize tiny particles to safely deliver drugs, genetic material or diagnostic sensors into the living body and combat viral pathogens, including the Epstein-Barr Virus.
Eli Lily, best known for its blockbuster weight loss and diabetes drugs, saw strong demand for its flagship products Zepbound and Mounjaro, with first-quarter revenue in the U.S. for each product coming in at $4.16 billion and $4.2 billion respectively.
As it faces fierce competition from Wegovy maker Novo Nordisk, Eli Lily has rolled out its newly approved GLP-1 obesity pill Foundayo in the second quarter.
The company maintained a 60.1% share of the U.S. obesity and drug market in the first quarter, with Novo Nordisk holding a 39.4% share.
— CNBC’s Annika Kim Constantino contributed to this report
