Lilly inks $2.4B cash deal to buy DICE and its immunology pipeline

Eli Lilly is joining the “blistering” pace of M&A this year as it bets $2.4 billion in cash on DICE Therapeutics, a publicly traded biotech with oral IL-17 inhibitors in the clinic.

The Indianapolis-based Big Pharma said Monday morning it would buy the South San Francisco biotech, which has a small molecule inhibitor, dubbed DC-806, for psoriasis and other autoimmune and inflammatory diseases in Phase II. Lilly CEO David Ricks has repeatedly called out the Inflation Reduction Act’s impact on small molecule development.

Kevin Judice

Beyond that, DICE has DC-853 in Phase I for similar diseases, and it has said that molecule might have better potency and metabolic stability than DC-806, per the biotech’s pipeline. The company also has discovery-stage projects in inflammatory bowel disease and fibrosis and an oral PD-L1 for immuno-oncology.

Lilly expects the deal, at a 40% 30-day premium of $48.00 per share of DICE stock, to close in the third quarter.

“We’re eager to see our pipeline, including our oral IL-17 inhibitors, DC-806 and DC-853, benefit from Lilly’s resources and global reach, and I’m excited by the prospect of watching these two talented teams in a united quest for scientific innovation,” DICE CEO Kevin Judice said in a statement.

therapeutics
biotech
pharma
buy