Eli Lilly to Buy Migraine Drug Developer CoLucid Pharmaceuticals

By Joshua Jamerson

Eli Lilly & Co. reached an agreement to acquire CoLucid Pharmaceuticals Inc. for about $960 million, adding a potential near-term launch to its late-stage drug pipeline.

Under the terms of the deal, Lilly will pay $46.50 a share for CoLucid, a 33% premium to the company's share price at Tuesday's close.

CoLucid is a biopharmaceutical company developing an oral treatment for migraine, Lasmiditan, with data expected from a late-stage trial this year that could set the stage for U.S. regulatory approval for the drug in 2018. Lasmiditan would add to Lilly's emerging pain management pipeline, which includes galcanezumab, a potential treatment for the prevention of migraine and cluster headache. Lasmiditan was originally developed at Lilly and was licensed to CoLucid in 2005.

The transaction, subject to regulatory approval, is expected to close by the end of the first quarter. Lilly expects to book a charge of about $850 million, or 80 cents a share, when it reports first-quarter earnings in April, but the transaction won't affect adjusted earnings guidance.

CoLucid stock rose 33% to $46.30 premarket. Lilly was inactive.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

January 18, 2017 07:39 ET (12:39 GMT)

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