{"id":28696,"date":"2024-07-12T17:55:25","date_gmt":"2024-07-12T12:25:25","guid":{"rendered":"https:\/\/www.delveinsight.com\/blog\/?p=28696"},"modified":"2026-05-14T14:00:26","modified_gmt":"2026-05-14T08:30:26","slug":"eli-lilly-acquires-morphic","status":"publish","type":"post","link":"https:\/\/www.delveinsight.com\/blog\/eli-lilly-acquires-morphic","title":{"rendered":"Eli Lilly strengthening its Gastroenterology portfolio post Acquisition of Morphic. Tracking competitors and alliances in inflammatory bowel disease (IBD)."},"content":{"rendered":"\n

In a strategic move aimed at bolstering its portfolio in inflammatory bowel disease (IBD) treatments, Eli Lilly and Company has announced a definitive agreement to acquire Morphic Holding for approximately USD 3.2 billion. <\/strong>The purchase price represents a 79% premium to Morphic\u2019s closing stock price<\/strong>. Post the tender offer, any remaining shares will be acquired through a second-step merger at the same price. This acquisition, slated to close in the third quarter of 2024<\/strong> pending regulatory approvals, underscores Lilly\u2019s enduring commitment to pioneering therapies in the field of gastroenterology<\/strong>.<\/p>\n\n\n\n

Through the deal, Lilly will procure an experimental oral IBD treatment<\/strong>, tapping into a growing trend towards more patient-friendly treatment options. Along with Lilly, other drug makers such as Abbvie, Pfizer, <\/strong>and Johnson & Johnson<\/strong> are also jostling for a share of the bowel disease market.<\/p>\n\n\n\n

IBD collectively refers to two conditions – Crohn’s disease <\/strong>and Ulcerative colitis<\/strong>– characterized by chronic inflammation of the gastrointestinal tract. Treatment typically involves either surgery or drug therapy, including anti-inflammatory drugs, immune system suppressors, biologics, antibiotics, pain relievers, vitamins, and nutritional support.<\/p>\n\n\n\n

What\u2019s more to the IBD landscape?<\/strong><\/p>\n\n\n\n

The latter half of 2023 saw several landmark FDA approvals for gastroenterology and hepatology, particularly in the treatment of ulcerative colitis, with four new options squeezing into an already saturated market.<\/p>\n\n\n\n

Within the last few months, the agency has approved several \u201cfirst and only\u201d ulcerative colitis therapies, including AbbVie\u2019s SKYRIZI<\/strong> (risankizumab), a IL-23 specific inhibitor, Eli Lilly\u2019s<\/strong> trailblazing IL-23p19 inhibitor, OMVOH<\/strong> (mirikizumab), Pfizer\u2019s VELSIPITY <\/strong>(etrasimod) as a second S1P receptor modulator and two subcutaneous formulation offerings: Takeda Pharmaceuticals\u2019 ENTYVIO <\/strong>(vedolizumab) and Celltrion\u2019s ZYMFENTRA <\/strong>(infliximab-dyyb). With these newly approved therapies battling for market share against established heavyweights like Janssen\u2019s STELARA <\/strong>(ustekinumab), AbbVie\u2019s HUMIRA <\/strong>(adalimumab) and Pfizer\u2019s XELJANZ <\/strong>(tofacitinib), the stage is set for a shake-up in the ulcerative colitis treatment landscape going forward.<\/p>\n\n\n\n

In the realm of Crohn’s disease treatment, the biologics market <\/strong>has been predominantly led by anti-TNF agents, <\/strong>particularly HUMIRA and REMICADE<\/strong>, however classes such as anti-integrin and interleukin inhibitor are making inroads into the market owing to a better clinical profile (i.e. no black box warnings) and convenient dosing.<\/p>\n\n\n\n

Unveiling the Core Asset, MORF-057. Why was it acquired?<\/strong><\/p>\n\n\n\n

Central to this acquisition is Morphic\u2019s flagship program, MORF-057<\/strong>, a selective oral small molecule inhibitor of \u03b14\u03b27 integrin tailored for treating IBD. Currently, the drug is being evaluated in two Phase II studies for ulcerative colitis<\/strong> and one Phase II study for Crohn\u2019s disease<\/strong>. As of April 2024, Morphic was enrolling patients in the Phase IIb EMERALD-2 trial for ulcerative colitis and anticipated dosing the first patient in the Phase II GARNET trial for Crohn\u2019s disease by the second quarter of 2024. Further details on these studies are expected to be disclosed in Morphic’s second quarter results.<\/p>\n\n\n\n

MORF-057 <\/strong>stands as a promising candidate, with the potential to challenge Takeda\u2019s ENTYVIO. <\/strong>While Entyvio, requires injection, MORF-057 offers the convenience of an oral treatment. This distinction positions MORF-057 as a strong competitor in the market. In 2023, ENTYVIO <\/strong>achieved blockbuster global sales of roughly USD 5 billion, <\/strong>reflecting its strong commercial uptake post approval of its subcutaneous version.<\/p>\n\n\n\n

Beyond MORF-057, Morphic brings to Lilly a robust pipeline encompassing treatments for autoimmune diseases, pulmonary hypertensive diseases, fibrotic diseases, and cancer. This diverse portfolio aligns with Lilly’s strategic focus on expanding its footprint in immunology<\/strong> and inflammation.<\/strong><\/p>\n\n\n\n

Alliances that took place last year in 2023<\/strong><\/p>\n\n\n\n

In 2023, several significant deals occurred in the pharmaceutical industry focused on treatments for IBD. Few of the notable deals include:<\/p>\n\n\n\n