Lilly acquires Dermira for $1.1bn, expands dermatology portfolio

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Eli Lilly set to acquire dermatological drugs developer, Dermira, in an $1.1bn all-cash deal, adding commercial and late-stage drugs to its portfolio.

Eli Lilly announced it has signed a definitive agreement to acquire biopharmaceutical company Dermira, which is focused on treatments for chronic skin conditions, for approximately $1.1bn (€990m) in cash.

The transaction is expected to close by the end of the first quarter of 2020.

Obtained assets

The transaction will see Lilly expand its immunology pipeline with the addition of lebrikizumab, a monoclonal antibody currently being investigated in Phase III trials as a treatment for moderate-to-severe atopic dermatitis in adolescent and adult patients, ages 12 years and older.

The potential treatment was granted fast track designation from the US Food and Drug Administration (FDA) in December 2019.

Moreover, the acquisition will see Lilly obtain Qbrexza (glycopyrronium), an FDA-approved product for the topical treatment of primary axillary hyperhidrosis launched in 2018.

Qbrexza brought Dermira sales of $10.2m in Q3 2019.

In a statement, Patrik Jonsson, Lilly’s SVP and president of Lilly Bio-Medicines, cited the potential of lebrikizumab as a positive outcome of the acquisition, adding that the deal follows the company’s strategy to acquire clinical phase assets and bring them to market.