Lilly announces three acquisitions to build infectious disease portfolio

Eli Lilly and Company has announced agreements to acquire three companies, Curevo Inc., LimmaTech Biologics AG, and Vaccine Company, Inc., to enhance its research and development efforts in addressing infectious diseases. These acquisitions are part of Lilly's strategy to invest in advanced technology platforms that target significant health challenges, particularly those related to viral and bacterial pathogens.

Curevo's principal product candidate, amezosvatein, is an adjuvanted subunit vaccine aimed at preventing shingles in adults. Despite the effectiveness of current shingles prevention methods, the tolerability issues have resulted in lower vaccination rates. Amezosvatein has shown promise in clinical trials, matching immune responses of the standard of care while significantly reducing side effects. The vaccine could potentially reduce long-term risks associated with shingles, such as elevated stroke risk and dementia.

Under the agreement with Curevo, Lilly will acquire the company for up to $1.5 billion, which includes an upfront payment and additional payments based on milestone achievements.

LimmaTech is focused on developing vaccines against bacterial pathogens impacted by rising antimicrobial resistance. Its flagship program, LTB-SA7, is in early-stage development targeting Staphylococcus aureus, a major cause of surgical-site infections. The acquisition of LimmaTech will cost Lilly up to $780 million in cash, reflecting the upfront payment and potential future payments tied to clinical and regulatory milestones.

Vaccine Company is advancing proprietary In Vivo Nanoparticle technologies that facilitate antigen display to elicit durable immune responses. Its lead program targets Epstein-Barr Virus with a Phase 1-ready candidate. The implications of a prophylactic vaccine are significant, as it may prevent not only acute infectious mononucleosis but also long-term neurological and cancer risks associated with EBV. Lilly's acquisition of Vaccine Company could amount to up to $1.55 billion in cash based on similar milestone-based agreements.

The transactions are contingent on customary closing conditions, including compliance with antitrust regulations. Lilly plans to integrate these acquisitions into its financial framework in accordance with Generally Accepted Accounting Principles.