Pharmaceutical firm Eli Lilly and Company (LLY) announced that it has acquired private biotech company Protomer for over $1 billion. Following the news, shares of the company appreciated on Wednesday and closed at $236.54.
Prior to the acquisition, Lilly had a 14% stake in Protomer in lieu of the investment made through its JDRF T1D Fund.
With the buyout, Lilly will gain access to Protomer’s proprietary chemical biology-based platform that enables the development of therapeutic peptides and proteins with tunable activity that can be controlled using small molecules.
The Vice-President of Diabetes Research and Clinical Investigation at Lilly, Ruth Gimeno, said, “Protomer’s glucose-sensing insulin program, based on its proprietary molecular engineering of protein sensors (MEPS) platform, is showing significant promise and Lilly is excited to enhance our diabetes pipeline with the company’s innovative technology.” (See Lilly stock chart on TipRanks)
Recently, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on the stock with a price target of $250. The analyst’s price target implies upside potential of 5.8% from current levels.
Consensus among analysts is a Strong Buy based on 10 Buys and 2 Holds. The average Lilly price target of $242.45 implies upside potential of 2.6% from current levels.
Shares of the company have gained 42.9% over the past year.
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