Eli Lilly will acquire Merida Biosciences for up to $2.875 billion, adding MER511 and its precision autoantibody platform for Graves’ disease and TED.
Written By: Khushi Patel, PharmD
Reviewed By: Pharmacally Editorial Team
Eli Lilly will acquire Merida Biosciences in a deal valued at up to $2.875 billion, bringing Merida’s antibody-engineering platform and clinical-stage program MER511 into Lilly’s immunology pipeline. The acquisition expands Lilly’s focus on selectively removing disease-causing autoantibodies in conditions including Graves’ disease and thyroid eye disease (TED).
Lilly Targets the Drivers of Autoimmune Disease
Merida’s platform uses engineered biologics to selectively degrade pathogenic antibodies while preserving normal immune function. The approach differs from conventional immunosuppressive therapies, which broadly dampen immune activity rather than directly removing the antibodies that drive disease.
Its lead program, MER511, is in Phase 1 development for Graves’ disease and TED. Both conditions are driven by thyroid-stimulating immunoglobulins, autoantibodies that activate the thyroid-stimulating hormone receptor and contribute to abnormal thyroid activity and disease manifestations.
Initial Phase 1 data showed robust reductions in pathogenic thyroid-stimulating antibodies, along with a favorable initial safety profile. The companies did not disclose detailed numerical efficacy or safety results, or the specific breakdown between upfront and milestone payments within the $2.875 billion deal value.
Graves’ disease affects about 3 million people in the U.S. and is associated with increased cardiovascular risk and mortality. About 25% to 40% of people with Graves’ disease develop TED, which can cause eye pain, disfigurement and, in severe cases, vision loss.
Current treatments are available for both conditions, but they do not directly eliminate the pathogenic autoantibodies driving the disease. This leaves an opportunity for therapies that target the underlying antibody-mediated mechanism more selectively.
Platform Could Extend Beyond Thyroid Disease
Merida’s pipeline extends its antibody-degradation technology into other immune-mediated diseases. Its preclinical MER769 program targets the antibody involved in allergic reactions and is being explored across food allergy, asthma and chronic spontaneous urticaria.
Earlier programs include candidates for kidney diseases such as membranous nephropathy and other antibody-driven immune disorders.
This broader platform potential is central to Lilly’s interest in Merida. The transaction adds not only a clinical-stage asset but also a technology platform that could generate candidates across multiple autoimmune and allergic diseases.
Francisco Ramírez-Valle, M.D., Ph.D., Lilly’s senior vice president of immunology research and early clinical development, said the company is pursuing therapies that can alter disease course rather than primarily treating downstream effects. He pointed to MER511’s ability to directly remove disease-causing autoantibodies while preserving normal immune function.
Acquisition Moves MER511 Into Lilly’s Pipeline
Under the definitive agreement, Lilly will pay up to $2.875 billion in cash, comprising an upfront payment and contingent milestone payments. The transaction remains subject to customary closing conditions, including regulatory approvals.
The companies expect the acquisition to close in the fourth quarter of 2026. Lilly will determine the transaction’s accounting treatment under GAAP at closing and reflect its impact in subsequent financial results and financial guidance.
For Merida, the deal moves MER511 from an early clinical-stage biotechnology company into Lilly’s immunology pipeline. The key development question will be whether the reductions in pathogenic antibodies observed in Phase 1 translate into meaningful and durable clinical benefits for patients with Graves’ disease and TED.
More broadly, clinical validation of selective antibody degradation could support a new treatment strategy for diseases in which pathogenic antibodies are central drivers of disease, potentially offering an alternative to broader immune suppression.
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About the Writer
Khushi Patel is a Pharm.D (Linkedin) professional with a strong foundation in clinical pharmacy, patient-centered care, regulatory affairs, and pharmacovigilance, with published work on Brugada syndrome.
Her interests include regulatory affairs, pharmacovigilance, guideline integration, multimodal therapy, pharmacogenomics, and antibiogram utilization, with a focus on evidence-based clinical decision-making and medication safety.
As a Pharmacally healthcare writer, she translates clinical and scientific evidence into clear, accurate, and clinically relevant healthcare content, while continuously developing her expertise in evolving pharmacy practice.