Lilly announces agreement to acquire Dermira for $1.1bn

Eli Lilly and Company and Dermira, Inc have announced a definitive agreement for Lilly to acquire Dermira for $18.75 per share, or approximately $1.1 billion, in an all-cash transaction.

This acquisition expands Lilly’s immunology pipeline with the addition of lebrikizumab, a novel, investigational, monoclonal antibody (mAb) designed to bind IL-13 with high affinity that is being evaluated in a Phase III clinical development programme for the treatment of moderate-to-severe atopic dermatitis in adolescent and adult patients, aged 12 years and older.

The acquisition agreement also expands Lilly’s portfolio of marketed dermatology medicines with the addition of QBREXZA^® (glycopyrronium), a medicated cloth approved by the US Food and Drug Administration (FDA) for the topical treatment of primary axillary hyperhidrosis (uncontrolled excessive underarm sweating).

“We are pleased to complete the acquisition of Dermira and look forward to continuing their important work to develop new therapeutic options for patients with chronic skin conditions,” said Patrik Jonsson, Lilly senior vice president and president of Lilly Bio-Medicines.

Under the terms of the agreement, Lilly will commence a tender offer to acquire all outstanding shares of Dermira, Inc. The transaction is not subject to any financing condition and is expected to close by the end of the first quarter of 2020, subject to customary closing conditions, including receipt of required regulatory approvals and the tender of a majority of the outstanding shares of Dermira’s common stock. Following the successful closing of the tender offer, Lilly will acquire any shares of Dermira that are not tendered into the tender offer through a second-step merger at the tender offer price.

“Since Dermira’s inception, we have been focused on applying strong science to medical dermatology with the goal of finding new ways to treat some of the most common skin conditions that affect millions of people every year,” added Tom Wiggans, Chairman and Chief Executive Officer at Dermira. “We are pleased that Lilly has recognised the progress we have made and the opportunities for lebrikizumab and QBREXZA. We share with Lilly a common interest in helping patients through the development of innovative treatments and believe that patients and physicians will benefit from the resources that Lilly can bring to maximise the potential of our programmes.

“We also believe this proposed transaction is in the best interests of Dermira and our stockholders and affirms the dedication and important groundwork established by Dermira’s talented employees since the founding of the company nearly 10 years ago.”