Eli Lilly, a major player in the pharmaceutical industry, is taking strides toward offering more convenient treatment options for patients with inflammatory diseases through the development of pill-based therapies. The company’s latest move in this direction is the $3.2 billion acquisition of Morphic Therapeutic, a deal that adds a promising oral small molecule drug candidate to Lilly’s portfolio, designed to combat inflammatory bowel disease (IBD).

Morphic, based in Waltham, Massachusetts, specializes in research on integrins, which are receptors involved in various biological processes including cell proliferation, tissue repair, and inflammation. While current integrin-targeting drugs are large molecules that require injection, Morphic’s technology platform focuses on developing small molecule pills. This approach aligns with Lilly’s strategic intent to enhance its product offerings in the realm of immunology by transitioning from injectable to oral medications.

The highlight of this acquisition is Morphic’s leading drug candidate, MORF-057, a small molecule aimed at inhibiting the integrin alpha 4 beta 7, which is also targeted by Takeda Pharmaceutical’s Entyvio, a successful injectable treatment approved for ulcerative colitis and Crohn’s disease. MORF-057 is currently undergoing two Phase 2 clinical trials for ulcerative colitis and one for Crohn’s disease, with results anticipated in the first half of the next year.

Lilly itself has recently expanded its portfolio in the field of ulcerative colitis with the FDA approval of its antibody drug mirikizumab (branded as Omvoh) last fall, which is also in late-stage development for Crohn’s disease. This demonstrates Lilly’s continued focus on expanding and improving its offerings in IBD treatments. Additionally, last year Lilly acquired Dice Therapeutics for $2.4 billion, securing a platform technology that generates orally administrable small molecules targeting the same proteins as biologic drugs typically offered in infused or injected forms.

Lilly’s current pipeline includes other promising products from the Dice acquisition, such as DC-806 (now LY4100504) in Phase 2 development for psoriasis and DC-853 in Phase 1 testing for autoimmune diseases. Both of these are small molecules targeting IL-17, a protein involved in various inflammatory disorders including IBD.

The significance of transitioning to oral therapies for inflammatory conditions lies in their potential to facilitate earlier intervention and offer the possibility of combination therapies for more severe disease states. According to Lilly’s Chief Scientific Officer, Daniel Skovronsky, oral treatments expand possibilities for patient care in diseases like ulcerative colitis, enhancing the potential for effective management through combination therapies.

Analysts have noted that the acquisition of Morphic by Lilly, especially before the Phase 2 data readout of MORF-057, reflects Lilly’s confidence in this drug candidate’s clinical profile and commercial potential to provide a safe and effective oral therapy for IBD. The risk of opposition from the Federal Trade Commission to this acquisition seems low due to the limited direct overlap between Morphic’s and Lilly’s programs. This acquisition strategy is seen as a continuation of Lilly’s approach to accumulate oral drug candidates that target clinically validated pathways originally pioneered by biologic medications.

In addition to Morphic’s MORF-057, another notable oral drug in Lilly’s pipeline is Ocadusert, a RIPK1-targeting small molecule resulting from a partnership with Rigel Pharmaceuticals, which is currently in Phase 2 testing for rheumatoid arthritis.

Through these strategic acquisitions and developments, Eli Lilly is positioning itself strongly in the market for developing accessible, orally administered treatments that could transform the therapeutic landscape for patients suffering from inflammatory and autoimmune diseases.
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