Eli Lilly & Co. is set to acquire Versanis Bio, a startup focused on developing a drug for obesity and other heart and metabolism-related conditions, in a deal worth nearly $2 billion. The acquisition will provide Lilly with access to Versanis’ experimental drug, bimagrumab, which aims to help individuals lose weight while preserving their muscle mass.
Versanis is currently studying the drug candidate on its own as well as in combination with semaglutide, Novo Nordisk’s successful obesity drug. As part of the deal, Lilly will pay up to $1.93 billion in cash, including an upfront payment and future payments based on certain development and sales milestones.
The purchase of Versanis reflects the growing interest among pharmaceutical companies in the obesity market, following the success of drugs like Novo Nordisk’s Wegovy. Lilly is actively seeking approval for its diabetes drug Mounjaro as a treatment for obesity, and also has a promising obesity drug, retatrutide, which recently showed impressive results at the American Diabetes Association conference.
Lilly intends to leverage its expertise with existing drugs to create combinations that will effectively address obesity, according to Ruth Gimeno, the company’s group vice president of diabetes, obesity, and cardiometabolic research.
Upon news of the acquisition, Lilly’s shares rose as much as 2.3% at the New York market open.
The pharmaceutical industry’s focus on the obesity market underscores the urgent need for effective treatments for this global health issue. By investing in research and development in this area, companies like Lilly and Novo Nordisk are aiming to provide individuals struggling with obesity and its associated health complications with innovative solutions.
The acquisition of Versanis Bio by Lilly represents another step forward in the quest to combat obesity and improve overall metabolic health. With the synergies and resources that Lilly brings to the table, there is hope that new breakthroughs in obesity treatment could be on the horizon.
