Eli Lilly to Buy Centessa Pharmaceuticals for Initial $6.3 Billion — Update
By Colin Kellaher
Eli Lilly has agreed to buy clinical-stage company Centessa Pharmaceuticals for an initial payment of about $6.3 billion in a deal that expands the drugmaker's neuroscience portfolio and capabilities into sleep medicine.
Eli Lilly on Tuesday said it will pay an initial $38 a share in cash for Centessa, a 38% premium to Monday's closing price of $27.58 for the U.K.-based company.
Centessa investors will also receive nontransferrable contingent value rights worth up to an additional $9 a share, bringing the total potential deal consideration to about $7.8 billion, or $47 a share.
The deal is slated to close in the third quarter.
Shares of Centessa were recently up 48% to $40.76 in premarket trading.
Centessa is developing a new class of drugs for the treatment of excessive daytime sleepiness and other neurological conditions, and its lead product candidate, cleminorexton, has shown a potential best-in-class profile in Phase 2a studies in narcolepsy and idiopathic hypersomnia, Eli Lilly said.
The Indianapolis drugmaker said the contingent value rights are tied to future Food and Drug Administration approvals of cleminorexton and Centessa's ORX142 drug candidate.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 31, 2026 07:49 ET (11:49 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
3 Stocks to Sell and 3 Stocks to Buy for November
This Once-Hot AI Stock Now Looks Deeply Undervalued
The 10 Best Companies to Invest in Now
He Tried Shorting Jim Cramer’s Stock Picks. It Cost Him More Than Money
United States