Lilly Agrees to Buy US Biotech Morphic in $3.2 Billion Deal (2)

Eli Lilly & Co. agreed to buy U.S. gut-drug maker Morphic Holding Inc. for about $3.2 billion, plowing some of the proceeds from obesity blockbuster Zepbound into its experimental pipeline.

Lilly will pay $57 a share in cash for Waltham, Massachusetts-based Morphic, or 79% more than the closing price Friday, the companies said in a statement Monday. Morphic’s board recommends that stockholders tender their shares in the offer.

Immunology is a core area for Lilly, whose Chief Executive Officer Dave Ricks has promised more early-stage deals to acquire new technologies. For Morphic shareholders, the takeover is a turnaround after disappointing ...