Tuesday, June 20, 2023
Eli Lilly and Company (NYSE: LLY) and DICE Therapeutics, Inc. (NASDAQ: DICE) have announced a definitive agreement for Lilly to acquire DICE. The agreement aims to advance innovation in immunology.
DICE Therapeutics is a biopharmaceutical company known for its proprietary DELSCAPE technology platform, which is used to develop novel oral therapeutic candidates for treating chronic diseases in immunology. Their focus includes the development of oral IL-17 inhibitors that are currently in clinical development.
The acquisition is expected to enhance Lilly's efforts in improving the lives of individuals with autoimmune diseases. Lilly's executive vice president, Patrik Jonsson, expressed enthusiasm for the collaboration and the potential of DICE's technology and drug discovery expertise to contribute to the development of new treatments.
DICE Therapeutics CEO, Kevin Judice, highlighted the benefits of the partnership, noting that their pipeline, particularly the oral IL-17 inhibitors DC-806 and DC-853, will gain from Lilly's resources and global reach. The collaboration aims to drive scientific innovation in the pursuit of effective therapies for autoimmune diseases.
Under the agreement, Lilly will commence a tender offer to acquire all outstanding shares of DICE at a purchase price of $48 per share in cash, totaling approximately $2.4 billion. The transaction is subject to customary closing conditions, including regulatory clearance, and is expected to close in the third quarter of 2023.
The announcement of the acquisition represents a significant premium to DICE's stock price. DICE's Board of Directors unanimously recommends that stockholders tender their shares in the offer.
Kirkland & Ellis LLP is serving as legal counsel for Lilly, while Centerview Partners LLC is acting as the exclusive financial advisor and Fenwick & West LLP as legal counsel for DICE.