By Puyaan Singh

Jan 7 (Reuters) - Eli Lilly ( LLY ) will buy autoimmune drug developer Ventyx Biosciences ( VTYX ) for $1.2 billion in cash, the companies said on Wednesday, marking the Zepbound maker's latest push to expand beyond its ‌blockbuster diabetes and weight-loss drugs.

Ventyx is developing several treatments, including oral therapies ​for inflammatory bowel diseases such as Crohn's and ulcerative ‍colitis, besides drugs for immunity-related, cardiometabolic and ⁠neurodegenerative disorders.

One of ⁠its drugs in a mid-stage trial is targeting a cardiovascular condition linked ‌to obesity, potentially complementing Lilly's ​metabolic and immunology franchises.

Lilly will acquire all of the outstanding shares of Ventyx for $14 per share, ⁠representing a premium of around ‍2% ​over the stock's close on Wednesday.

Ventyx shares closed 28% higher in the day following media reports on the ‍deal. The San Diego-based company's stock was little changed in extended trading.

The $1.2 billion price tag is borderline immaterial to Lilly, said Cantor Fitzgerald analyst Carter Gould.

"We like that Lilly is taking chances on potentially transformative opportunities at ​relatively ‍small dollar amounts. Indeed, the program would sit nicely within Lilly's cardiometabolic franchise," Gould said.

This is Lilly's ​first major transaction of 2026, following a year when its market value topped $1 trillion on surging sales of GLP-1 drugs Mounjaro and Zepbound.

The diabetes and obesity drugs have delivered annual revenue that eclipsed traditional blockbusters and cemented Lilly's position as the ​world's most valuable drugmaker.

Its deal with Ventyx is expected to close in the first half of 2026.