07:23 AM EDT, 07/08/2024 (MT Newswires) -- Eli Lilly ( LLY ) has signed a definitive deal to acquire biopharmaceutical company Morphic Holding ( MORF ) for $57 in cash per Morphic ( MORF ) common share, or a total of about $3.2 billion, payable at closing, the companies said Monday.

The offer price represents a 79% premium to Morphic ( MORF ) stock's Friday close, according to a statement.

The acquisition will expand Eli Lilly's ( LLY ) immunology pipeline with Morphic's ( MORF ) ongoing development of oral integrin therapies for chronic diseases, according to the companies.

The boards of both companies have approved the transaction, which is not subject to any financing condition and is expected to close in Q3, the companies said.

Shares of Morphic Holding ( MORF ) and Eli Lilly ( LLY ) were up more than 77% and about 0.2% respectively in premarket activity Monday.

Price: 916.00, Change: +1.43, Percent Change: +0.16