Morphic Holding Inc. (MORF): $55.78
Market Cap: $2.79 B
Deal Size: $3.2 B
For this week’s Merger Arbitrage post, we delve into Eli Lilly’s (LLY) acquisition of Morphic Holding, Inc. (MORF) for $3.2 billion. This transaction, part of a wave of recent pharma deals, involves Lilly launching a tender offer to buy all outstanding shares of Morphic at $57 per share in cash. The acquisition grants Lilly access to Morphic’s experimental drug for inflammatory bowel diseases, thereby enhancing its immunology pipeline with oral integrin therapies.
The deal trades at a tiny spread of 2.14% but the annualized spread of 9.89% is not bad considering the deal is expected to close in the third quarter of 2024.