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Eli Lilly and Company (LLY) said on Wednesday that it would acquire Ventyx Biosciences (VTYX) in a deal worth $1.2 billion.
Lilly will acquire all of the outstanding shares of Ventyx’s common stock for $14 per share in an all-cash transaction, the company said. The transaction is expected to close in the first half of 2026, provided it meets all necessary closing conditions and gains necessary regulatory approvals. The transaction is not subject to any financing conditions, it added. The board of directors of both companies have approved the transaction.
VTYX shares closed up 37% on Wednesday. LLY shares also closed 4% higher in the regular trading session.
Ventyx is a San Diego-based clinical-stage biopharmaceutical company focused on developing innovative oral therapies for inflammatory-mediated diseases.
"Ventyx's clinical-stage pipeline addresses a critical need for better treatment options across diseases mediated by chronic inflammation and further strengthens our ability to deliver meaningful advances for patients living with challenging diseases across focus areas of cardiometabolic health, neurodegeneration and autoimmunity," said Daniel M. Skovronsky, chief scientific and product officer, and president of Lilly Research Laboratories.
The Wall Street Journal had reported earlier this week that Lilly is in advance talks to acquire Ventyx for over $1 billion.
Ventyx’s pipeline includes a drug in development for the treatment of recurrent pericarditis and another being developed for patients with Parkinson’s disease. The company also has two compounds aimed at treating inflammatory bowel disease.
Ventyx would add to Lilly’s portfolio of autoimmune conditions, obesity and related disorders, were its experimental drugs to get U.S. Food and Drug Administration’s (FDA) approvals. Lilly is best known for its weight-loss drug Zepbound.
On Stocktwits, retail sentiment around VTYX stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.
VTYX stock has gained 445% over the past 12 months while LLY rose 43%.
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