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Eli Lilly and Co (NYSE:LLY) said on Tuesday it will acquire Centessa Pharmaceuticals PLC (NASDAQ:CNTA) for $38 per share in cash, with a potential contingent value right worth up to $9 per share, valuing the deal at approximately $6.3 billion upfront and up to $7.8 billion including milestones.
The acquisition adds Centessa’s sleep-wake disorder pipeline, including its lead asset cleminorexton, to Lilly’s neuroscience business.
Cleminorexton is being evaluated in clinical trials for narcolepsy type 1, narcolepsy type 2, and idiopathic hypersomnia.
Centessa shares surged about 45% in early trading on Tuesday, while Lilly shares rose roughly 2.9%.
BMO Capital reiterated an Outperform rating and a $1,300 price target on Eli Lilly shares following the acquisition announcement. The firm said the deal is positive for Lilly, noting the company is acquiring from a position of strength and diversifying its business ahead of any major loss of exclusivity events.
The deal highlights Lilly’s effort to broaden its portfolio beyond metabolic treatments and strengthen its presence in neuroscience.