Eli Lilly to Acquire Versanis Bio for $1.925 Billion to Expand Obesity Treatment Portfolio

Intelligent Finance APP learned that European pharmaceutical investment company Medicxi announced on Friday that Eli Lilly and Company (LLY.US) has agreed to acquire its invested company Versanis Bio for $1.925 billion in cash. Versanis Bio is a private biopharmaceutical company focused on cardiometabolic diseases and obesity. The total value of the deal includes an upfront payment as well as subsequent payments based on development and sales milestones. With the support of Medicxi, Versanis is currently conducting a Phase 2b clinical trial of its lead drug, bimagrumab, which targets metabolic diseases and obesity.

In 2021, Versanis Bio announced the completion of a $70 million Series A financing round to advance the clinical development of bimagrumab, an activin receptor type II antagonist. This round was co-led by Atlas Venture and Medicxi.

Versanis Bio obtained the development license for bimagrumab from Novartis (NVS.US). In the mid-stage trial named BELIEVE, this experimental therapy is being studied as a monotherapy or in combination with semaglutide for the treatment of overweight or obese adults. Semaglutide, marketed by Novo Nordisk (NVO.US) under the brand name Wegovy, is an FDA-approved weight-loss medication. Eli Lilly and Company is also advancing its diabetes treatment Mounjaro (tirzepatide) for weight-loss indications.

Versanis Bio, headquartered in California, USA, was founded by biotechnology investment firm Aditum Bio with the aim of discovering and developing drugs targeting common medical issues among the elderly. Bimagrumab is Versanis Bio's leading project, designed to help overweight and obese adults achieve and maintain a healthy body composition.