Eli Lilly confirmed on Wednesday its agreement to acquire Merida Biosciences for approximately $2.875 billion, expanding the drugmaker's push into autoimmune disease treatment. The Indianapolis-based company is acquiring Merida's antibody discovery platform and its lead candidate, MER511.

Merida, a privately held biotechnology firm, is developing MER511 as a targeted therapy for antibody-driven autoimmune conditions. The drug is already being tested in early-stage clinical trials, and Lilly executives said the platform could yield additional candidates across immunology.

The transaction adds to significant pharmaceutical dealmaking in the autoimmune space, where companies are competing to develop precision therapies that neutralise disease-causing antibodies. Lilly said the acquisition complemented its existing immunology pipeline and would be funded from available cash.

A Lilly spokesperson said the deal was expected to close in the coming months, subject to customary regulatory approvals and closing conditions. The company plans to integrate Merida's research staff and platform into Lilly's immunology division.

The purchase reflects Lilly's strategy of buying early-stage assets to diversify beyond its dominant diabetes and obesity franchises. Industry analysts have noted that large drugmakers are paying premiums for autoimmune platforms with broad therapeutic potential.