Why Eli Lilly Stock Is Rising Today
Shares of Eli Lilly (NYSE: LLY) were up by 3.13% on heavy volume as of 11:32 a.m. ET Friday morning. The drugmaker's stock is rising today in response to a buyout agreement with privately owned Versanis Bio.
The acquisition will expand Lilly's portfolio of metabolic disease treatments with the addition of bimagrumab, a monoclonal antibody currently in phase 2 clinical trials for weight loss. Under the terms of the agreement, Lilly will pay an undisclosed upfront amount to Versanis Bio and may make additional payments based on the achievement of certain development and commercial milestones. The total value of the deal could reach up to $1.93 billion, according to Lilly.
Bimagrumab is a novel anti-obesity agent that targets the activin type II A and B receptors. Unlike the GLP-1 receptor agonists developed by Lilly and Novo Nordisk, bimagrumab has a unique mode of action that may offer additional benefits such as promoting fat loss while increasing muscle mass in obese patients.
Source Fool.com
