Eli Lilly to Buy Skin-Drug Maker Dermira for $1.1 Billion (3)

Eli Lilly & Co. agreed to acquire Dermira Inc. for $1.1 billion, snapping up the maker of an experimental treatment for skin disorder dermatitis that was recently placed on a fast track to approval by U.S. regulators.

Under the terms of the proposed transaction, Eli Lilly will pay $18.75 in cash for each Dermira share, the companies said in a statement Friday. That’s 2.2% higher than Thursday’s closing price. Dermira shares rose as much as 4.4% in trading Friday.

Shares of Menlo Park-based Dermira have surged 90% in the past month. In December, the Food and Drug Administration granted fast-track ...