Lilly to Acquire Centessa for Up to $7.8B

Eli Lilly has agreed to acquire Centessa Pharmaceuticals for up to $7.8 billion. Under the terms, Lilly will pay $38 per share up front, valuing the deal at $6.3 billion for Centessa, with additional contingent payments of up to $1.5 billion if certain FDA approval deadlines are met.

Centessa is developing orexin agonists for narcolepsy and excessive daytime sleepiness, a drug class Lilly says could have broader potential. The transaction is expected to close in the third quarter, pending regulatory approval.