Eli Lilly strikes $6.3bn deal for Centessa to bolster neuroscience pipeline

Eli Lilly has agreed to acquire Centessa Pharmaceuticals in a deal valued at $6.3bn upfront, as the US drugmaker deepens its push into neuroscience and sleep-related disorders.

Under the terms announced on Tuesday, Lilly will pay $38 a share in cash — a 38 per cent premium to Centessa’s previous closing price of $27.58. The offer values the UK-based biotech at approximately $6.3bn on an initial basis.

Centessa shareholders will also receive non-transferable contingent value rights worth up to a further $9 per share, linked to regulatory milestones. If achieved, the additional payments would lift the total consideration to as much as $7.8bn, or $47 per share.

The transaction, which is expected to complete in the third quarter, was met with a sharp market reaction, with Centessa shares rising nearly 50 per cent to $40.95 in pre-market trading.

The acquisition centres on Centessa’s pipeline of treatments targeting neurological conditions, particularly excessive daytime sleepiness. Its lead candidate, cleminorexton, has shown encouraging results in mid-stage trials for narcolepsy and idiopathic hypersomnia, with Lilly highlighting its potential to be best-in-class.

The contingent payments are tied to future approvals from the U.S. Food and Drug Administration for cleminorexton as well as Centessa’s ORX142 programme.

The deal marks the latest in a series of acquisitions by Lilly as it seeks to broaden its research capabilities. In recent months, the company has struck agreements to acquire Orna Therapeutics for up to $2.4bn and Ventyx Biosciences for about $1.2bn, signalling an intensifying focus on early-stage innovation.