On January 10, Eli Lilly announced that it had reached a final agreement to acquire Dermira at a price of $18.75 per share, representing an approximately 86% premium over Dermira’s weighted average trading price during the preceding 60 days. The total value of the transaction is $1.1 billion, and it is expected to be completed by the end of the first quarter of 2020.
Eli Lilly’s acquisition of Dermira aims to strengthen its portfolio in the field of immunological diseases, including the addition of lebrikizumab, an investigational anti-interleukin-13 (IL-13) monoclonal antibody. The product is currently in Phase III clinical trials for the treatment of moderate-to-severe atopic dermatitis in adolescents aged 12 years and older and adults, and was granted “Fast Track” designation by the FDA in December 2019.
Lebrikizumab was not originally part of Dermira’s portfolio. In August 2017, Dermira entered into a licensing agreement with Roche, securing exclusive global rights to develop and commercialize lebrikizumab for atopic dermatitis and other indications. However, Roche retained the global development rights for lebrikizumab in the treatment of interstitial lung disease.
IL-13 is a potent regulator of type 2 immunity, acting on various immune cells including promyelocytes, monocyte-macrophages, B lymphocytes, and large granular lymphocytes. Atopic dermatitis is a chronic skin disease mediated by type 2 inflammatory responses. The IL-13-mediated signaling pathway plays a crucial role in the pathogenesis of atopic dermatitis, and blocking IL-13 can improve the clinical symptoms of AD.
Clinical Development Programs Targeting IL-13
Source: PharmCube NextPharma
Through the acquisition of Dermira, Eli Lilly also gains access to Qbrexza (glycopyrronium), a dermatological drug approved by the FDA as a topical treatment for primary axillary hyperhidrosis in adult and pediatric patients aged 9 years and older.
“There is a significant unmet treatment need among patients with moderate-to-severe atopic dermatitis, and we are excited that lebrikizumab can help these patients,” said Patrik Jonsson, Senior Vice President and President of Biomedicines at Eli Lilly. “The acquisition of Dermira aligns with Eli Lilly’s strategic plan to strengthen its pipeline assets in core therapeutic areas. Eli Lilly will leverage its robust development and commercialization capabilities to further advance the development of Dermira’s investigational drugs. This will not only benefit the broad population of patients with atopic dermatitis but also provide more options for patients with primary axillary hyperhidrosis. We look forward to Dermira’s continued outstanding work and the successful completion of the transaction.”
“Since Dermira’s inception, we have been committed to applying science to medical dermatology, aiming to find new ways to treat common skin conditions that affect millions of people each year,” said Tom Wiggans, Chairman and CEO of Dermira. “We are pleased that Eli Lilly recognizes the progress Dermira has made, including the potential opportunities associated with lebrikizumab and Qbrexza. We share Eli Lilly’s vision of helping patients through the development of innovative therapies, and we firmly believe that patients and physicians will benefit from this acquisition in the future. We also believe that this proposed transaction is in the best interests of Dermira and its shareholders, and serves as a recognition of the dedication demonstrated by all our employees over the past decade.”