On July 8, 2024, Eli Lilly and Company (NYSE: LLY) agreed to acquire Morphic Holding, Inc. (NASDAQ: MORF) for approximately $3.2 billion USD (about $4.22 billion CAD). Lilly will pay $57 USD ($75.24 CAD) per share, representing a 79.0% premium to Morphic’s closing stock price on July 5, 2024. The acquisition is expected to close in Q3 2024.

Morphic’s lead program, MORF-057, an oral small molecule inhibitor for inflammatory bowel disease (IBD), is in Phase 2 studies for ulcerative colitis and Crohn’s disease. Morphic also has a preclinical pipeline targeting autoimmune, pulmonary hypertensive, fibrotic diseases, and cancer. Dr. Daniel Skovronsky of Lilly emphasized the potential of oral therapies, while Dr. Praveen Tipirneni of Morphic highlighted the strategic fit with Lilly.

Eli Lilly has a strong presence in Canada through Eli Lilly Canada, which has been a significant player since 1938 and was notably involved in producing the first commercially available insulin in collaboration with the University of Toronto. Morphic, on the other hand, does not have a significant direct presence in Canada.

Citi acted as the exclusive financial advisor for Lilly, with Kirkland & Ellis LLP providing legal counsel. Centerview Partners LLC served as the exclusive financial advisor for Morphic, with Evercore Group L.L.C. also advising. Fenwick & West LLP acted as legal counsel for Morphic.