{"id":2732,"date":"2026-03-31T16:43:55","date_gmt":"2026-03-31T16:43:55","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/03\/31\/eli-lilly-stock-rises-after-7-8b-centessa-deal-bet-on-sleep-drugs\/"},"modified":"2026-03-31T16:43:55","modified_gmt":"2026-03-31T16:43:55","slug":"eli-lilly-stock-rises-after-7-8b-centessa-deal-bet-on-sleep-drugs","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/03\/31\/eli-lilly-stock-rises-after-7-8b-centessa-deal-bet-on-sleep-drugs\/","title":{"rendered":"Eli Lilly stock rises after $7.8B Centessa deal\u2014bet on sleep drugs"},"content":{"rendered":"
<\/div>\n

Eli Lilly has agreed to acquire Centessa Pharmaceuticals in a deal valued at up to $7.8 billion, marking a significant expansion of the drugmaker\u2019s neuroscience portfolio into sleep medicine.<\/p>\n

Under the terms announced Tuesday, Lilly will pay $38 per share in cash upfront, valuing Centessa at approximately $6.3 billion. <\/p>\n

The offer represents a 38% premium to Centessa\u2019s Monday closing price of $27.58. <\/p>\n

Shareholders will also receive nontransferable contingent value rights worth up to an additional $9 per share, tied to future regulatory approvals of Centessa\u2019s drug candidates.<\/p>\n

The total potential consideration brings the deal value to $47 per share or about $7.8 billion.<\/p>\n

The transaction is expected to close in the third quarter, subject to regulatory approval.<\/p>\n

Lilly\u2019s shares rose 2.75% following the announcement, while Centessa\u2019s US-listed ADR surged 45%, reflecting investor optimism about the strategic fit and future potential of the pipeline.<\/p>\n

Bet on orexin-based therapies<\/h2>\n

The acquisition centers on Centessa\u2019s experimental drug portfolio targeting excessive daytime sleepiness, including narcolepsy and idiopathic hypersomnia. <\/p>\n

These conditions impair the ability to stay awake during the day and are part of a broader category of neurological disorders.<\/p>\n

Centessa\u2019s lead candidate, cleminorexton, has demonstrated what Lilly described as a potential best-in-class profile in Phase 2a studies. <\/p>\n

Another candidate, ORX142, is also part of the agreement, with milestone payments tied to approvals from the US Food and Drug Administration.<\/p>\n

The therapies belong to a new class of drugs known as orexin agonists, which target the brain\u2019s sleep-wake regulation system. The approach is drawing increasing interest across the pharmaceutical industry.<\/p>\n

\u201cOrexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle,\u201d Dr. Carole Ho, president of Lilly Neuroscience, said in a statement. \u201cCentessa has assembled a portfolio with the breadth and depth to improve wakefulness across a broad array of indications.\u201d<\/p>\n

Beyond narcolepsy, these drugs may have applications in conditions such as Alzheimer\u2019s disease and depression, where drowsiness is a common symptom.<\/p>\n

Competitive landscape and broader strategy<\/h2>\n

Centessa is not expected to be first to market in the orexin agonist category. <\/p>\n

A competing treatment from Takeda is currently under FDA review and could receive approval later this year.<\/p>\n

Analysts estimate the market for orexin-based treatments could reach between $15 billion and $20 billion if roughly a quarter of eligible patients seek treatment. <\/p>\n

Wider adoption across additional neurological conditions could further expand that opportunity.<\/p>\n

Despite promising mid-stage data, Centessa\u2019s lead drug is not expected to gain approval until 2028, according to analyst estimates. However, early results suggest it could emerge as a best-in-class option.<\/p>\n

The deal underscores Lilly\u2019s broader strategy of reinvesting proceeds from its successful obesity and diabetes drugs, including Zepbound and Mounjaro, into new therapeutic areas.<\/p>\n

It also follows a series of recent acquisitions. Earlier this year, Lilly announced plans to acquire Orna Therapeutics for up to $2.4 billion and Ventyx Biosciences for about $1.2 billion.<\/p>\n

With the Centessa deal, Lilly is deepening its presence in neuroscience, building on a legacy that includes blockbuster treatments such as Prozac and more recent Alzheimer\u2019s therapy Kisunla.<\/p>\n<\/p>\n

The post Eli Lilly stock rises after $7.8B Centessa deal\u2014bet on sleep drugs<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Eli Lilly has agreed to acquire Centessa Pharmaceuticals in a deal valued at up to $7.8 billion, marking a significant expansion of the drugmaker\u2019s neuroscience portfolio into sleep medicine.Under the terms announced Tuesday, Lilly will pay $38 per share in cash upfront, valuing Centessa at approximately $6.3 billion. The offer represents a 38% premium to…<\/p>\n","protected":false},"author":1,"featured_media":2733,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=2732"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/2733"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=2732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=2732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=2732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}