Lilly’s $6.3B Centessa takeout helps validate broad potential of OX2R agonists beyond narcolepsy

Eli Lilly’s proposed $6.3 billion acquisition of Centessa brings a second pharma into the orexin 2 receptor agonist race for narcolepsy, adding validation to the class while supporting hope that its applications will extend far beyond the primary narcolepsy type 1 indication.

On Tuesday, Eli Lilly and Co. (NYSE:LLY) announced plans to acquire the Medicxi Ventures-formed biotech for $38 per share, representing a total takeout price of $6.3 billion and a 38% premium over Monday’s close of $27.58. The deal also includes a contingent value right of $9 per share, the majority of which is tied to commercial milestones for indications other than type 1 narcolepsy (NT1)...