MER511 - (NEXUS)

Aug. 31, 2026: Eli Lilly and Company (NYSE: LLY) and Merida Biosciences announced a definitive agreement for Lilly to acquire Merida for up to $2.875 billion in cash, including an upfront payment and contingent milestone payments. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in Q4 2026.

The key catalyst asset is MER511, Merida’s lead program in Phase 1 for Graves’ disease and thyroid eye disease (TED). The release says initial Phase 1 data showed MER511 achieved robust reductions in pathogenic thyroid-stimulating antibodies with a favorable initial safety profile. Merida’s approach is designed to selectively degrade disease-causing autoantibodies while preserving normal immune function.

Merida’s pipeline also includes MER769, a preclinical program for food allergy, asthma, chronic spontaneous urticaria, and other IgE-driven diseases, plus earlier-stage programs in kidney diseases including membranous nephropathy and other immune-mediated conditions.

This is primarily an M&A/strategic pipeline expansion catalyst, with Lilly highlighting the acquisition as a way to strengthen its immunology capabilities and broaden its platform for antibody-driven autoimmune and allergic diseases.