LLY Expands Cell Therapy Ambitions With $2.4B Orna Therapeutics Deal

Core Insights - Eli Lilly (LLY) has entered into a definitive agreement to acquire Orna Therapeutics for $2.4 billion, which includes both upfront and milestone-based payments [1][8] - The acquisition will enhance Eli Lilly's portfolio with Orna's in vivo CAR-T pipeline, particularly the lead asset ORN-252, aimed at treating B-cell-driven autoimmune diseases [2][8] - Eli Lilly will also gain access to Orna's proprietary circular RNA platform, which may enable new therapeutic applications [3][8] Financial Performance - Eli Lilly's financial performance is currently strong, bolstered by the success of its GLP-1 therapies, Mounjaro and Zepbound, contributing to its market capitalization reaching $1 trillion [9][10] - The acquisition of Orna Therapeutics is seen as a long-term strategy for pipeline diversification rather than a response to immediate revenue pressures [10] Strategic Fit - The deal aligns with Eli Lilly's intent to diversify its therapeutic areas beyond metabolic diseases, as evidenced by recent regulatory approvals in immunology, oncology, and neuroscience [10] - Orna Therapeutics benefits from the acquisition as it lacks the commercial infrastructure to bring its advanced therapies to market, which Eli Lilly can provide [11] Recent M&A Activity - This acquisition marks Eli Lilly's second deal in 2023, following its offer to acquire Ventyx Biosciences for $1.2 billion, aimed at enhancing its portfolio in oral small-molecule therapies for inflammatory-mediated diseases [12]