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Eli Lilly Reports Deal To Buy Dermira For $1.1B

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Eli Lilly Reports Deal To Buy Dermira For $1.1B

Eli Lilly (NYSE: LLY) announced Friday it will acquire Dermira, Inc. (NASDAQ: DERM) for $18.75 per share, around $1.1 billion, in an all-cash transaction.

Dermira is a biopharmaceutical company developing new therapies for chronic skin conditions.

"People suffering from moderate-to-severe atopic dermatitis have significant unmet treatment needs, and we are excited about the potential that lebrikizumab has to help these patients," said Patrik Jonsson, Lilly senior vice president and president of Lilly Bio-Medicines. "The acquisition of Dermira is consistent with Lilly's strategy to augment our own internal research by acquiring clinical phase assets in our core therapeutic areas and leveraging our development expertise and commercial infrastructure to bring new medicines to patients."

The transaction is expected to close by the end of the first-quarter of 2020. The purchase price represents a premium of 86% to the 60-day volume-weighted average trading price of Dermira's stock ending on Jan 9., the last trading day before the announcement of the transaction.

Certain Dermira stockholders, owning approximately 13% of Dermira's outstanding common stock, have agreed to tender their shares in the tender offer.

Dermira shares traded higher by 2.4% to $18.77 at time of publication.

Related Links:

Eli Lilly Reports Mixed Q3 Earnings, Raises Guidance

Eli Lilly Announces Positive Results For Emgality

Posted-In: Biotech M&A News General Best of Benzinga

 

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