U.S. pharmaceutical company Eli Lilly (LLY) has acquired Engage Biologics for $202 million in cash.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Engage Biologics is focused on making drugs that are based on a person’s DNA. The acquisition includes an upfront payment and subsequent payments based on the achievement of specific milestones, said Eli Lilly in a news release.
This is the latest in a series of acquisitions by Eli Lilly. The company earlier this year reached a $2.75 billion deal with Hong Kong-based Insilico Medicine to bring drugs developed using artificial intelligence (AI) to the global market.
Beyond Weight-Loss Drugs
Eli Lilly is well-known for its weight-loss drugs that include Zepbound and Foundayo. However, the company also makes medications to treat many other diseases and medical conditions, ranging from heart disease and cancer to Alzheimer’s.
The company has been using acquisitions in recent years to help strengthen its pipeline of potential new medications, buying smaller companies that are focused on specific treatments and diseases, such as Engage Biologics and its DNA treatments.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 19 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,262.85 implies 28% upside from current levels.
