Eli Lilly Strikes Three Vaccine Deals Worth Up to $4 Billion
Drugmaker renews focus on infectious-disease prevention as GLP-1 windfall funds dealmaking spree
Eli Lilly (LLY) has agreed to acquire three vaccine developers in transactions valued at up to nearly $4 billion combined, marking a significant push by the weight-loss drug market leader into infectious-disease prevention.
The Indianapolis-based company said it would purchase Curevo, LimmaTech Biologics and Vaccine Company in separate deals, confirming earlier reports.
Curevo is developing a shingles vaccine that Lilly believes could match the efficacy of the current standard of care while delivering a more favorable side-effect profile. Lilly has agreed to pay up to $1.5 billion in cash for the company, comprising an undisclosed upfront sum and a contingent milestone payment. LimmaTech, which is developing vaccines against bacterial pathogens including Staphylococcus aureus, is valued at up to $780 million, with additional payments tied to clinical and regulatory milestones. The third target, Vaccine Company, is focused on a vaccine against Epstein-Barr virus and could fetch up to $1.55 billion, including upfront and potential clinical and commercial milestone payments.
Daniel Skovronsky, Lilly's chief scientific and product officer, said the acquisitions reflected a belief that the scientific tools now existed to meaningfully address the continued global burden of infectious disease. If successful, vaccines would join diabetes, obesity, oncology, immunology and neurodegeneration as core therapeutic areas for the company.
Lilly is pursuing the deals from a position of considerable financial strength, buoyed by surging revenues from its GLP-1 portfolio, which includes Zepbound for weight loss and Mounjaro for type 2 diabetes. The company has recently announced a series of bolt-on acquisitions targeting cancer, sleep disorders and autoimmune diseases, each valued at below $10 billion.
The company has historical roots in infectious disease — it produced one of the original polio vaccines and developed COVID-19 antibody treatments — though the segment has not been a strategic priority in recent years.
Curevo's shingles vaccine has completed a mid-stage clinical trial but is likely several years from commercialization, pending a late-stage study and regulatory clearance. Shingles vaccines are recommended in the U.S. for adults aged 50 and older. LimmaTech's staph vaccine, if it clears clinical testing, could be administered to patients prior to surgery to guard against Staphylococcus aureus infections — a pathogen for which no licensed vaccine currently exists. Similarly, there is no approved vaccine against Epstein-Barr virus; Vaccine Company's candidate could also reduce the long-term risk of multiple sclerosis, Skovronsky said.