David Ricks, CEO, Eli Lilly and Company
Scott Mill | CNBC
Eli Lilly to buy Dice for $48 a share in cash, about 40% premium to San San Francisco based companyClose on Friday. The transaction is expected to close in the third quarter of this year.
Shares of Eli Lilly rose more than 1% in early trading. Shares of Dice Therapeutics rose more than 37%, just shy of the purchase price.
Patrik Jonsson, Executive Vice President, Eli Lilly, said: “Combined with its new technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will strengthen our efforts to bring People live better.” Press release.
Dice is a biopharmaceutical company using a proprietary technology platform to develop novel oral treatments for autoimmune diseases, in which the body’s immune system mistakenly attacks the body’s own cells instead of protecting them.
Autoimmune diseases can cause symptoms such as pain, fatigue, dizziness, depression and rashes.
There are more than 100 known autoimmune diseases, including lupus, rheumatoid arthritis, Crohn’s disease, and ulcerative colitis.
Dice’s lead drug is in mid-stage trials for an immune-related skin disease called psoriasis.
Eli Lilly’s immunology portfolio includes drugs such as Taltz for plaque psoriasis and Olumiant for rheumatoid arthritis. Last year, Taltz had revenue of $2.48 billion, while Olumiant had sales of $830.5 million.