Key Takeaways
- Eli Lilly shares hit a record high after the company completed two acquisitions from earlier this year.
- The deals expand Lilly’s reach into potential diabetes and obesity treatments
- Together, the two deals could have a total value of more than $2 billion, if certain conditions are reached.
Eli Lilly (LLY) shares hit an all-time high as the drugmaker completed two acquisitions, including one related to the hot market for weight-loss treatments.
The company said it completed the July purchase of Versanis Bio, including its lead asset, bimagrumab. Bimagrumab is in a Phase 2b study alone and in combination with the drug in Novo Nordisk’s (NVO) Ozempic and Wegovy to treat overweight and obese adults.
The deal could value Versanis Bio up to $1.925 billion, depending on achievement of certain development and sales milestones.
In a separate release, Lilly said it completed the June purchase of Sigilon Therapeutics. Sigilon is focused on medicines for a broad range of acute and chronic diseases, and has been working with Lilly since 2018 on a treatment for patients with Type 1 diabetes.
Sigilon investors are receiving $14.92 per share up front, and they are getting one non-tradeable contingent value right (CVR) per share, which could be worth another $111.64 in cash. That makes the potential transaction worth about $309.6 million, excluding shares held by Lilly.
Shares of Eli Lilly gained 1.8% on Monday and have risen nearly 50% so far this year.
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Source: https://www.investopedia.com/eli-lilly-shares-reach-record-high-after-completing-two-acquisitions-7643260?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo