Eli Lilly to Buy Dermira Inc. for $1.1 Billion

By Colin Kellaher

Eli Lilly & Co. (LLY) Friday said it agreed to buy biopharmaceutical company Dermira Inc. (DERM) for $18.75 a share, or about $1.1 billion in cash.

The deal represents a scant 2.2% premium to Thursday's closing price of $18.34 for Dermira, but Eli Lilly said it represents a roughly 86% premium to the 60-day volume-weighted average trading price for the Menlo Park, Calif., company.

Eli Lilly said the acquisition will expand its immunology pipeline with the addition of lebrikizumab, which is being evaluated in a phase 3 study for the treatment of moderate-to-severe atopic dermatitis.

The Indianapolis drug maker said it expects to complete the acquisition, which isn't subject to any financing condition, by the end of the first quarter.

Dermira shares rose 0.9% to $18.51 in light premarket trading Friday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 10, 2020 06:58 ET (11:58 GMT)

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