This blog is another installment in a series, Innovations Advanced by M&A, that underscores the unique role of mergers and acquisitions in promoting a competitive and innovative life sciences ecosystem for patients. You can find previous blogs in this series here.
For many early-stage life sciences companies, mergers and acquisitions (M&A) represent a critical path. M&A helps companies unlock the complementary resources and expertise that help advance a new therapy from the lab to patients at scale. For example, Dermira’s acquisition by Eli Lilly & Co. helped bring Ebglyss, a novel monoclonal antibody treatment, to patients living with moderate-to-severe atopic dermatitis (AD).
Dermira was founded in 2010 by Dr. Eugene Bauer, a Stanford University professor, with the goal of bringing specialized scientific expertise to the development of dermatological therapies. AD is a chronic skin condition that affects over 31 million Americans, and can severely impact patients’ sleep, daily activities and overall well-being.
In 2019, Dermira secured Fast Track designation for lebrikizumab (Ebglyss), an innovative therapy for patients with moderate-to-severe AD. Dermira was acquired by Lilly in 2020, bringing together the two companies’ resources, expertise and infrastructure to help advance Ebglyss through FDA approval and into the hands of patients.
“We share with Lilly a common interest in helping patients through the development of innovative treatments and believe that patients and physicians will benefit from the resources that Lilly can bring to maximize the potential of our programs.“
Shortly after, the combined company successfully completed two late-stage clinical trials, resulting in FDA approval for Ebglyss to treat moderate-to-severe AD in September 2024. The approval of a new treatment option for AD represented a breakthrough moment for patients.
“People suffering from moderate-to-severe atopic dermatitis have significant unmet treatment needs, and we are excited about the potential that lebrikizumab has to help these patients… We look forward to completing the acquisition and continuing Dermira’s excellent work.”
– Patrik Jonsson, Senior Vice President, Lilly; President, Lilly Bio-Medicines (January 2020)
This example demonstrates the unique and fundamental role of life sciences M&A in allowing companies to “pass the baton” and advance new innovations to patients. To continue driving innovation, competition and growth in America’s life sciences industry, policymakers must avoid creating unnecessary obstacles for these pro-competitive partnerships.