INDIANAPOLIS, USA & BOSTON, USA & LONDON, UK, March 31, 2026
Eli Lilly and Company has announced a definitive agreement to acquire Centessa Pharmaceuticals in a deal valued at up to $7.8 billion, marking a significant expansion of its neuroscience and sleep disorder therapeutics portfolio. The acquisition centers on Centessa’s innovative orexin receptor 2 (OX2R) agonist pipeline, including its lead candidate cleminorexton, which has demonstrated promising results in Phase 2 clinical trials for narcolepsy and related sleep-wake disorders.
Strategic Acquisition Strengthens Neuroscience Pipeline
The transaction reflects Lilly’s strategic focus on advancing next-generation neuroscience therapies, particularly targeting the sleep-wake cycle through orexin biology, which is considered a critical regulatory mechanism in neurological function. Centessa has developed a potential best-in-class portfolio of OX2R agonists, designed to address conditions such as narcolepsy, idiopathic hypersomnia, and excessive daytime sleepiness.
Under the terms of the agreement, Lilly will acquire Centessa for $38.00 per share in cash, along with a contingent value right (CVR) of up to $9.00 per share, bringing the total potential value to approximately $47.00 per share. The CVR is linked to future regulatory milestones, including U.S. FDA approvals for sleep disorder indications, reinforcing the deal’s strong connection to clinical and regulatory success pathways.
Clinical Innovation Driving Future Growth
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Centessa’s lead asset, cleminorexton (formerly ORX750), has shown a compelling efficacy profile in Phase 2a studies, demonstrating its potential to improve wakefulness and cognitive function in patients with sleep disorders. The broader pipeline includes both clinical-stage and preclinical assets, targeting a range of neurological and neuropsychiatric conditions, positioning the company at the forefront of orexin-based therapeutic innovation.
The acquisition enables Lilly to leverage its global clinical development, regulatory expertise, and commercialization capabilities to accelerate the advancement of these therapies. This integration is expected to enhance clinical trial execution, regulatory approvals, and market access, ultimately benefiting patients with unmet medical needs in sleep medicine.
Regulatory Milestones and Market Impact
The deal, structured under the laws of England and Wales, is expected to close in the third quarter of 2026, subject to shareholder approval, regulatory clearances, and customary closing conditions. The transaction has already received approval from the boards of directors of both companies, with major shareholders representing approximately 24.1% of Centessa’s shares supporting the deal.
This acquisition highlights a broader industry trend where large pharmaceutical companies are investing heavily in innovative biotech pipelines to strengthen their portfolios and maintain competitive advantage. By targeting orexin-based therapies, Lilly is positioning itself at the forefront of a rapidly evolving therapeutic area with significant clinical and commercial potential.
A High-Impact Pharma M&A Move
The acquisition of Centessa represents a high-value strategic move by Lilly, combining cutting-edge neuroscience research with strong clinical and regulatory capabilities. As the pharmaceutical industry continues to evolve, deals like this underscore the importance of innovation-driven M&A in accelerating drug development and addressing unmet patient needs.
Source: Eli Lilly, Centessa Pharmaceuticals press release
