Eli Lilly Buys Sleep Drug Firm Centessa for $6.3B

Eli Lilly has announced its agreement to purchase Centessa Pharmaceuticals, a clinical-stage company, for an initial sum of approximately $6.3 billion. This acquisition is poised to broaden Eli Lilly's neuroscience portfolio, introducing new capabilities in the field of sleep medicine.

The deal involves an upfront cash payment of $38 per share for Centessa, representing a substantial 38% premium over its previous closing price. Additionally, Centessa's investors may receive contingent value rights, potentially increasing the total deal value to around $7.8 billion, or $47 per share.

Centessa is actively developing innovative treatments for excessive daytime sleepiness and other neurological conditions. Its lead drug candidate, cleminorexton, has exhibited promising results in early-stage studies for narcolepsy and idiopathic hypersomnia.

This strategic acquisition, expected to conclude in the third quarter, underscores Eli Lilly's commitment to advancing neurological therapies. The contingent value rights are linked to the future FDA approval of cleminorexton and another Centessa drug candidate, ORX142.