Eli Lilly Expands Neuroscience Pipeline with $6.3 Billion Centessa Acquisition

Eli Lilly (NYSE: LLY) has entered into a definitive agreement to acquire U.K.-based Centessa Pharmaceuticals (NASDAQ: CNTA), a move designed to accelerate the company's footprint in neuroscience. The transaction involves an up-front payment of approximately $6.3 billion, with an additional $1.5 billion potentially payable through contingent value rights (CVRs). This strategic acquisition allows Lilly to leverage Centessa's clinical-stage assets, most notably the sleep-wake disorder treatment cleminorexton. Under the terms of the agreement, Lilly will pay $38 per share, representing a premium of over 40% relative to Centessa's 30-day volume-weighted average price. The CVRs provide an additional $9 per share if specific regulatory milestones for cleminorexton are achieved. The acquisition is supported by Lilly's robust liquidity position, bolstered by the commercial success of its weight-loss and diabetes medications, Zepbound and Mounjaro. As of the end of last year, the company held nearly $7.2 billion in cash, while maintaining annual revenues exceeding $65 billion, providing ample headroom for the purchase despite existing long-term debt of over $42 billion. This expansion into neuroscience coincides with further growth in Lilly's obesity portfolio, following the recent FDA approval of the weight-loss pill Foundayo. The acquisition is expected to close in the third calendar quarter of 2026, pending regulatory and shareholder approvals.