Lilly to acquire three vaccine developers for up to $3.83 billion

INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY) announced today agreements to acquire three vaccine development companies for a combined potential value of up to $3.83 billion in cash, according to a press release statement. The acquisitions represent less than 0.5% of the pharmaceutical giant’s $950 billion market capitalization and come as the company maintains a "GREAT" financial health score according to InvestingPro analysis.

The pharmaceutical company will acquire Curevo Inc., LimmaTech Biologics AG, and Vaccine Company, Inc. to expand its infectious disease research and development efforts. With revenue surging 47% over the last twelve months to $72.25 billion, Lilly is deploying capital from its core diabetes and obesity franchises into new therapeutic areas.

Curevo shareholders could receive up to $1.5 billion, including an upfront payment and a milestone-based payment. The company’s lead candidate, amezosvatein, is an adjuvanted subunit vaccine for shingles prevention in adults. In a Phase 2 clinical trial, the vaccine matched the immune response of the current standard of care across all primary endpoints while reducing side effects such as activity-limiting fatigue, chills, and injection site pain by more than half.

Lilly will acquire LimmaTech Biologics for up to $780 million in cash, comprising an upfront payment and potential milestone-based payments. LimmaTech develops vaccines against bacterial pathogens including Staphylococcus aureus, Neisseria gonorrhoeae, and Chlamydia trachomatis. The company’s lead program, LTB-SA7, is in Phase 1 development as a vaccine against S. aureus.

Vaccine Company shareholders could receive up to $1.55 billion in cash through an upfront payment and milestone-based payments. The company is developing In Vivo Nanoparticle technologies for viral pathogen vaccines. Its lead program is a five-antigen Phase 1-ready candidate targeting Epstein-Barr Virus.

"These acquisitions reflect a deliberate strategy to prevent disease at its source rather than treat its consequences," said Daniel M. Skovronsky, chief scientific and product officer at Lilly. The strategic pivot comes as 18 analysts have recently revised their earnings estimates upward for the company, which trades at a PEG ratio of 0.29. For deeper insights into Lilly’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.

The transactions are subject to customary closing conditions, including expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Lilly will determine the accounting treatment following closing in accordance with Generally Accepted Accounting Principles.

In other recent news, Eli Lilly and Company announced that its investigational drug, retatrutide, achieved significant results in the TRIUMPH-1 Phase 3 clinical trial for obesity treatment. The study reported a 28.3% weight loss in participants, meeting both primary and key secondary endpoints. Additionally, Eli Lilly disclosed promising results from a Phase 1b trial of its PCSK9 base editor, VERVE-102, which showed a reduction in PCSK9 by up to 88% and LDL-C by up to 62%. These findings suggest potential for a one-time therapy for hypercholesterolemia. Furthermore, BofA Securities raised its price target for Eli Lilly shares to $1,251, maintaining a Buy rating, citing strong growth prospects in the GLP-1 category. Leerink also reiterated an Outperform rating with a $1,119 price target following the company’s gene therapy advancements. In another development, Eli Lilly participated in a roundtable organized by China’s commerce ministry, which included over 50 foreign pharmaceutical firms. Lastly, Eli Lilly is set to present oncology data at the 2026 ASCO meeting, with studies focusing on non-small cell lung cancer.

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