David Ricks, CEO, Eli Lilly
Scott Mill | CNBC
Eli Lilly on Tuesday he said he struck a $2.4 billion deal gain Cube therapy in an effort to expand his treatment portfolio for immune-related diseases.
Eli Lilly will pay $48 per share in cash to buy Cube, representing about a 40% premium over San A company based in FranciscoShares in the company closed Friday. The transaction is expected to close in the third quarter of this year.
Shares of Eli Lilly rose more than 1% in early morning trading. Dice Therapeutics’ stock price jumped more than 37% just below the purchase price.
“Combined with its new technology and drug discovery expertise, DICE’s talented workforce and passion for innovation will strengthen our efforts to improve the lives of people living with devastating autoimmune diseases,” said Patrik Jonsson, executive vice president of Eli Lilly. Press Release.
Dice is a biopharmaceutical company that uses a proprietary technology platform to develop novel oral therapeutics for autoimmune diseases in which the body’s immune system mistakenly attacks a person’s own cells instead of protecting them.
Autoimmune diseases can cause pain, fatigue, dizziness, depression, and rashes, among other symptoms.
There are more than 100 known autoimmune diseases, including lupus, rheumatoid arthritis, Crohn’s disease, and ulcerative colitis.
Dice’s lead drug is in a mid-stage study for an immune skin disease called psoriasis.
Eli Lilly’s immunology portfolio includes drugs such as Taltz, which treats plaque psoriasis, and Olumiant, a drug for rheumatoid arthritis. Last year, Taltz earned $2.48 billion, while Olumiant generated $830.5 million in revenue.