CNTA Stock Surges Over 46% Pre-Market — What’s The Eli Lilly Connection?

• The deal aims to tap into Centessa’s experimental therapies aimed at excessive daytime sleepiness.
• The deal values Centessa at roughly $6.3 billion upfront, with the CVR adding approximately $1.5 billion in potential equity value.
• Centessa is developing orexin receptor 2 (OX2R) agonists, including its lead candidate cleminorexton.

Eli Lilly and Company (LLY) has agreed to acquire Centessa Pharmaceuticals plc (CNTA) to expand its footprint in neuroscience and sleep disorder treatments. 

The deal targets Centessa’s pipeline of experimental therapies for the treatment of excessive daytime sleepiness and related neurological conditions. 

Deal Value At 40% Premium

Under the agreement, Lilly will purchase all outstanding shares of Centessa for $38 per share in cash, along with a contingent value right (CVR) that could increase the total consideration to $47 per share. The transaction values Centessa at roughly $6.3 billion upfront, and the CVR could add roughly $1.5 billion in additional equity value.

The cash offer represents a premium of more than 40% compared to Centessa’s closing price as of March 30. 

Following the announcement, Centessa Pharmaceuticals’ stock traded over 46% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘high’ levels in 24 hours. 

Centessa Pharmaceuticals' Therapy Portfolio Targets Sleep-Wake Disorders

Centessa has been developing a portfolio of orexin receptor 2 (OX2R) agonists, a class of therapies targeting the brain mechanisms that regulate wakefulness. Its lead candidate, cleminorexton, has shown encouraging results in mid-stage trials for conditions such as narcolepsy and idiopathic hypersomnia. 

The company is also advancing earlier-stage programs that could address a wider spectrum of neurological and psychiatric disorders.

"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, Lilly Neuroscience

CNTA stock has gained over 10% year-to-date.

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