Eli Lilly to Acquire Dermira for $1.1 Billion to Expand Dermatology and Immunology Pipeline

On January 13, 2020, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Eli Lilly announced the acquisition of all outstanding shares of the biopharmaceutical company Dermira at a price of $18.75 per share, for a total of $1.1 billion. The acquisition is expected to be completed by the end of the first quarter of 2020.

Following the completion of this acquisition, Eli Lilly will integrate Dermira’s atopic dermatitis treatment Lebrikizumab and hyperhidrosis medication QBREXZA to further advance its research in immunology and dermatology.

Dermira (NASDAQ: DERM), founded in 2010 and headquartered in Menlo Park, California, is a clinical-stage biopharmaceutical company. The company introduces novel biotechnologies into medical dermatology, committed to providing differentiated innovative therapies for millions of patients with chronic skin conditions. Dermira understands the needs of patients and physicians and leverages its extensive experience to research, develop, and commercialize leading medical dermatology products.

Lebrikizumab and QBREXZA are Dermira’s flagship products. The novel monoclonal antibody lebrikizumab received FDA Fast Track designation in December 2019 for the treatment of moderate-to-severe atopic dermatitis in patients aged 12 years and older. This antibody exhibits high affinity for the pathogenic mediator interleukin-13 (IL-13) and selectively inhibits its biological activity, thereby alleviating symptoms such as skin barrier dysfunction, pruritus, and cutaneous pain. Lebrikizumab is currently undergoing Phase 3 clinical development. QBREXZA, on the other hand, works by inhibiting sweat glands to reduce sweat production. Administered primarily via topical application, it is indicated for the treatment of primary axillary hyperhidrosis in patients aged 9 years and older.

Eli Lilly and Company, founded in 1876 and headquartered in Indianapolis, Indiana, USA, is a global leader in the healthcare sector. The company operates manufacturing facilities in 25 countries and regions, including the United States, China, and Puerto Rico, and is primarily engaged in the design, research and development, production, and sales of new pharmaceuticals. Eli Lilly’s portfolio of medications spans multiple therapeutic areas, with products distributed in 135 countries worldwide, delivering innovative healthcare solutions to people everywhere.

Patrik Jonsson, Senior Vice President of Biomedicines at Eli Lilly, stated, “There is an urgent unmet need for treatments in patients with moderate-to-severe atopic dermatitis, and lebrikizumab can significantly benefit these patients. The acquisition of Dermira aligns with Eli Lilly’s strategic approach to acquiring clinical-stage assets in core therapeutic areas, leveraging our specialized drug development expertise and commercial infrastructure to deliver new medicines to patients. We see strong potential in both lebrikizumab and QBREXZA, and we look forward to growing together with Dermira.”

Tom Wiggans, Chairman and CEO of Dermira, stated, “Since its inception, Dermira has been committed to applying innovative technologies to medical dermatology to develop new therapies for skin diseases. We are pleased that Eli Lilly recognizes our value. Dermira and Eli Lilly share a common belief in helping patients improve their quality of life through the development of innovative therapies. With Eli Lilly’s support, we will accelerate the R&D process for new drugs, benefiting both patients and physicians.”

(Compiled by Xu Xiaoxue)