Acquisition includes a potential best-in-class asset for excessive daytime sleepiness, broadening Lilly’s capabilities into sleep medicine.
Eli Lilly is acquiring biotech Centessa Pharmaceuticals for approximately $6.3 billion, a deal that’s set to support advancement of a multiple orexin receptor 2 (OX2R) agonists for sleep-wake disorders.
A further $1.5 billion contingent value right (CVR) payment is on offer to shareholders, subject to achievement of three specified milestones.
Through the agreement, Lilly gains access to Centessa’s OX2R agonist pipeline for excessive daytime sleepiness and other neurological conditions. The lead candidate cleminorexton has demonstrated promise in phase IIa clinical studies across narcolepsy type 1, narcolepsy type 2, and idiopathic hypersomnia.
Centessa and its partner Nxera Pharma Co jointly discovered Centessa’s OX2R agonists following an earlier collaboration. This alliance provided Centessa access to Nxera’s NxStaR technology. As such, Nxera is eligible for related milestone payments and royalties.
orexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle”
Carole Ho, Executive Vice President and President of Lilly Neuroscience, explained that orexin receptor biology “represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle”.
Mario Alberto Accardi, PhD, Chief Executive Officer of Centessa and Founder of the Orexin programme, said: “We’ve built a potential best-in-class portfolio of OX2R agonists with a level of depth and breadth that could help redefine what’s possible in neuroscience.
“… By combining Centessa’s team and capabilities with Lilly’s global complementary research, clinical, regulatory and commercial capabilities, we will seek to accelerate the advancement of our orexin portfolio across a broad range of neuroscience indications for the benefit of patients in need.”
The transaction is expected to close in Q3 2026, subject to customary closing conditions.
The past six month has also seen Novartis bolster its neuroscience pipeline through a major deal. The firm acquired Avidity Biosciences last October for $12 billion, adding potential first-in-class RNA therapeutics to its portfolio.
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