11:41 AM EDT, 07/08/2024 (MT Newswires) -- (Updates with the latest stock price movement in the headline and last paragraph.)

Eli Lilly ( LLY ) has agreed to acquire biopharmaceutical company Morphic Holding ( MORF ) for $57 in cash per common share, or a total of about $3.2 billion, the companies said Monday.

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

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

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

Morphic ( MORF ) shares were up nearly 75% in recent trading, while Lilly added 0.4%.

Price: 918.28, Change: +3.71, Percent Change: +0.41