Pharmaceutical giant Eli Lilly announced Tuesday its plan to purchase three vaccine development companies in transactions totaling nearly $4 billion, marking the company’s strategic move into infectious disease prevention.
The pharmaceutical company, which has generated substantial revenue from surging sales of its weight-loss medications, continues its buying spree as it diversifies beyond obesity treatment into additional medical fields.
The acquisitions include Curevo, LimmaTech Biologics and Vaccine Co.
Stock prices for Lilly rose 1.6% during pre-market trading sessions.
Under the Curevo agreement, shareholders stand to receive as much as $1.5 billion in cash payments, which includes initial compensation plus additional funds upon reaching certain development goals. Curevo specializes in creating a shingles prevention vaccine for adult patients.
LimmaTech, focused on developing immunizations targeting bacterial infections, will be purchased for as much as $780 million in cash. This amount covers initial payment plus possible additional compensation tied to achieving specific development benchmarks.
Vaccine Co specializes in creating an immunization against Epstein-Barr virus, which spreads easily and affects many people. Lilly has committed to paying up to $1.55 billion for this company, including immediate payment and possible future payments based on clinical trial success and commercial achievements.
The Wall Street Journal first reported these transactions earlier Tuesday.
