Eli Lilly agreed to buy Merida Biosciences for $2.875 billion, betting on a more selective immunology approach focused on degrading pathogenic autoantibodies. The deal adds Merida’s Graves disease program and technology for antibody targeting to Lilly’s growing immunology portfolio. Lilly’s acquisition is structured with an upfront component and contingent milestones, with analysts previously framing Merida as a potential contributor to a sizable commercial opportunity if clinical execution matches expectations. Lilly is positioning Merida’s lead asset, MER511, as a course-changing alternative for autoimmune disease—designed to eliminate targeted disease-causing antibodies rather than broadly suppress immunity. The transaction continues Lilly’s unusually active 2026 acquisition pace, extending prior immunology buyouts and strengthening its pipeline beyond obesity and diabetes.