Morphic’s oral IBD drug spurs $3.2B takeout from Lilly (FirstWord PHARMA)

Eli Lilly is set to acquire Morphic Therapeutic for $3.2 billion in cash, securing Morphic’s lead program, MORF-057, a selective oral small-molecule inhibitor of α4β7 integrin for inflammatory bowel disease (IBD). The deal, expected to close in the third quarter, values Morphic at $57 per share, a 79% premium. MORF-057 has shown promising Phase II results for ulcerative colitis (UC) and is also being tested for Crohn’s disease. This acquisition will expand Lilly’s gastroenterology portfolio, which includes the recently approved UC treatment Omvoh (mirikizumab).