Eli Lilly acquires biotech firm Dice Therapeutics for $2.4 billion
Nickie Louise
Posted On June 22, 2023
The pharmaceutical industry encompasses more than just weight-loss drugs. Eli Lilly, a prominent drug-making company, announced on Tuesday that it has agreed to acquire Dice Therapeutics, a specialized firm that focuses on developing oral treatments for autoimmune diseases. The deal, which was valued at $2.4 billion and reflects a significant 40% premium on Dice’s shares, will help the drug giant to advance innovation in immunology.
DICE is a biopharmaceutical firm that specializes in leveraging its proprietary DELSCAPE technology platform. With this platform, DICE focuses on the development of innovative oral therapeutic candidates, specifically targeting chronic diseases within the field of immunology. Its current clinical development efforts are centered around oral IL-17 inhibitors, which show promising potential for treating various chronic conditions.
“In combination with its novel technology and expertise in drug discovery, DICE’s talented workforce and passion for innovation will enhance our efforts to make life better for people living with devastating autoimmune diseases,” said Patrik Jonsson, executive vice president, president of Lilly Immunology and Lilly USA, chief customer officer. “We welcome DICE colleagues to Lilly and, together, we can tackle the challenges ahead in finding new treatments for patients with significant unmet medical needs.”
DICE Therapeutics CEO Kevin Judice added, “We’re eager to see our pipeline, including our oral IL-17 inhibitors, DC-806 and DC-853, benefit from Lilly’s resources and global reach and I’m excited by the prospect of watching these two talented teams in a united quest for scientific innovation. Our novel approach to discovering and advancing oral, small molecules against validated protein-protein interaction targets has even greater potential with Lilly’s industry-leading clinical development capabilities to get these medicines to patients suffering from autoimmune diseases.”
Why this matters
Eli Lilly is not alone in its pursuit of biotech companies specializing in autoimmune diseases. In April, Merck made headlines with its acquisition of Prometheus Biosciences for a staggering $10.8 billion, offering a premium of 75% on the share price at that time. Other major pharmaceutical companies are also closely monitoring the progress of European immunology biotech company Argenx, which is set to release crucial data next month.
Dice’s primary treatment targets psoriasis, an autoimmune condition that causes scaly and uncomfortable skin. According to the American Academy of Dermatology, approximately 7.5 million Americans suffer from psoriasis. Autoimmune diseases encompass a wide range of conditions, including Rheumatoid arthritis, Crohn’s disease, and lupus.
Eli Lilly already has expertise in autoimmune treatments with its psoriasis drug, Taltz. However, Dice’s focus lies in developing pill-based treatments, which offer advantages in terms of transportation and administration compared to injections.
