Eli Lilly (NYSE: LLY) Acquires DICE Therapeutics (NASDAQ: DICE): A New Step in Autoimmune Disease Treatments
Eli Lilly and Company (NYSE: LLY) has announced a definitive agreement to acquire DICE Therapeutics, Inc. (NASDAQ: DICE), a biopharmaceutical company known for its DELSCAPE technology platform and oral therapeutic candidates. This strategic acquisition aims to expedite the development of novel treatments for chronic autoimmune diseases.
Eli Lilly and DICE Therapeutics: A Perfect Synergy
Patrik Jonsson, an executive at Eli Lilly, lauded the innovation, talent, and drug discovery expertise of DICE Therapeutics. DICE’s specialization in oral IL-17 inhibitors could prove instrumental in addressing significant unmet medical needs.
DICE’s Novel Approach to Drug Discovery
Kevin Judice, CEO of DICE Therapeutics, expressed optimism for the future, specifically regarding their pipeline of IL-17 inhibitors DC-806 and DC-853. DICE’s unique approach to discovering and advancing oral, small molecules for protein-protein interaction targets will now benefit from Lilly’s industry-leading clinical development capabilities.
Lilly will initiate a tender offer to acquire all outstanding shares of DICE at $48 per share in cash, totaling approximately $2.4 billion. This represents a premium of about 40% to the 30-day volume-weighted average trading price of DICE’s common stock as of June 16, 2023.
The transaction is expected to close in the third quarter of 2023, pending standard closing conditions. Once the tender offer concludes, any remaining shares of DICE will be purchased through a second-step merger at the same price.
About DICE Therapeutics
DICE Therapeutics is a biopharmaceutical company renowned for its innovative DELSCAPE technology platform. It focuses on developing oral therapeutics for chronic immunological and other diseases. Their lead therapeutic candidates target IL-17, a pro-inflammatory signaling molecule implicated in numerous immunology indications. They’re also working on oral therapeutic candidates targeting integrin α4ß7 for treating inflammatory bowel disease.
Incorporating this transaction into Eli Lilly’s financial guidance and results will happen according to Generally Accepted Accounting Principles (GAAP). Eli Lilly will determine whether to treat this transaction as a business combination or an asset acquisition, including any associated in-process research and development charges, upon closing. Legal counsel for this transaction includes Kirkland & Ellis LLP for Lilly and Centerview Partners LLC and Fenwick & West LLP for DICE.
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