Eli Lilly to buy biopharma company Dermira for $1.1B
Demira is developing a treatment for moderate-to-severe dermatitis, a skin disease
Eli Lilly & Co. Friday said it agreed to buy biopharmaceutical company Dermira Inc. for $18.75 a share, or about $1.1 billion in cash.
The deal represents a scant 2.2 percent premium to Thursday's closing price of $18.34 for Dermira, but Eli Lilly said it represents a roughly 86 percent premium to the 60-day volume-weighted average trading price for the Menlo Park, Calif., company.
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Eli Lilly said the acquisition will expand its immunology pipeline with the addition of lebrikizumab, which is being evaluated in a phase 3 study for the treatment of moderate-to-severe atopic dermatitis.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LLY | ELI LILLY & CO. | 732.05 | -13.80 | -1.85% |
| DERM | JOURNEY MEDICAL CORPORATION | 3.40 | -0.14 | -3.95% |
The Indianapolis drugmaker said it expects to complete the acquisition, which isn't subject to any financing condition, by the end of the first quarter.
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Dermira shares rose 0.9 percent to $18.51 in light premarket trading Friday.