Eli Lilly Acquires Centessa for $6.3 Billion

Eli Lilly and Company announced on Tuesday that it has agreed to acquire Centessa Pharmaceuticals plc, a clinical-stage biopharmaceutical company focused on treatments for sleep-wake disorders, in a deal valued at approximately 6.3 billion dollars upfront. The transaction, which includes potential additional payments of up to 1.5 billion dollars, aims to bolster Lilly's neuroscience portfolio with Centessa's experimental orexin receptor 2 agonists.

Under the terms of the agreement, Lilly will pay 38 dollars in cash per American Depositary Share, representing a premium of about 38 percent over Centessa's closing price on Monday. An additional contingent value right of up to 9 dollars per share could bring the total value to around 7.8 billion dollars if certain regulatory milestones are met for Centessa's drug candidates. The deal is expected to close in the third quarter of 2025, pending approval from Centessa shareholders, regulatory clearances, and other standard conditions.

Centessa's shares surged more than 44 percent in early trading on Tuesday, reaching around 39.94 dollars on the Nasdaq, with volume exceeding 25 million shares, far above its average of about 1.8 million....