Lilly acquisition of Dermira : US pharma giant Eli Lilly and Company (Lilly) has agreed to acquire California-based dermatology drug company Dermira for about $1.1 billion in an all-cash deal as per the latest pharma acquisition news.
Dermira, which is being acquired for $18.75 per share, has been engaged in developing dermatology products for the treatment of people with chronic skin conditions.
Through Dermira’s acquisition, Lilly will be expanding its immunology pipeline with the inclusion of lebrikizumab, an investigational monoclonal antibody, which is being developed for the treatment of moderate-to-severe atopic dermatitis.
Lebrikizumab is currently being probed in a phase 3 clinical development program for the indication in adolescents and adults, aged 12 years and older.
In December 2019, the monoclonal antibody had secured fast track designation from the US Food and Drug Administration (FDA).
Apart from lebrikizumab, Lilly will be adding Dermira’s QBREXZA (glycopyrronium) cloth to expand its portfolio of marketed dermatology medicines. QBREXZA is a medicated cloth approved by the FDA for the topical treatment of primary axillary hyperhidrosis (uncontrolled excessive underarm sweating).
Commenting on Lilly acquisition of Dermira, Patrik Jonsson – Lilly senior vice president and president of Lilly Bio-Medicines, said: “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.
“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.”
Lilly acquisition of Dermira, which is subject to regulatory approvals and other customary conditions, is anticipated to closed by the end of Q1 2020.
Tom Wiggans – chairman and CEO at Dermira, commenting on Lilly acquisition of Dermira, said: “Since Dermira’s inception, we have been focused on applying strong science to medical dermatology with the goal of finding new ways to treat some of the most common skin conditions that affect millions of people every year.
“We are pleased that Lilly has recognized the progress we have made and the opportunities for lebrikizumab and QBREXZA. We share with Lilly a common interest in helping patients through the development of innovative treatments and believe that patients and physicians will benefit from the resources that Lilly can bring to maximize the potential of our programs.”
Evercore is the financial advisor for Lilly in the deal while Weil, Gotshal & Manges is the legal advisor. On the other hand, Citi is the lead financial advisor of Dermira for the transaction. SVB Leerink is the financial advisor for the dermatology drug company and Fenwick & West is its legal advisor.