May 26 (Reuters) – Eli Lilly said on Tuesday it will buy three vaccine developers in deals worth up to nearly $4 billion in combined value, signaling a push by the drugmaker into infectious disease prevention.
The drugmaker riding a wave of cash from the booming demand for its obesity drugs has been on an acquisition spree as it expands beyond weight loss to other therapeutic areas.
The company has agreed to acquire Curevo, LimmaTech Biologics and Vaccine Co.
Lilly shares were up 1.6% in premarket trading.
Curevo shareholders could receive up to $1.5 billion in cash, inclusive of an upfront payment, and a subsequent payment on achieving specified milestone. The company is developing a vaccine for the prevention of shingles in adults.
Lilly will acquire LimmaTech, which is developing vaccines against bacterial pathogens, for up to $780 million in cash, inclusive of an upfront payment and additional potential payments based upon the achievement of certain milestones.
The Vaccine Co is developing a vaccine against Epstein-Barr virus, a very common and highly contagious infection. Lilly agreed to pay up to $1.55 billion, inclusive of an upfront payment and potential clinical and commercial milestone payments.
The Wall Street Journal reported the deals earlier on Tuesday.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini Ganguli)
