(Reuters) - Eli Lilly (NYSE:LLY) and Co said on Thursday it will acquire all the shares of Sigilon Therapeutics that it did not own to gain access to experimental cell therapies that can provide longer-term solutions for diabetes patients.
A major provider of diabetes drugs and insulin, Lilly owned nearly 8.44% stake in Sigilon as of March 27. It would pay $14.92 per share, or $34.6 million in upfront cash, for the rest of the company.
Sigilon shareholders will get an additional $111.64 per share if they achieve certain developmental and regulatory milestones, Lilly said.
Shares of Sigilion soared more than eightfold in premarket trading to $34.48.The deal, which is expected to close in the third quarter of 2023, would give Lilly access to Sigilon's proprietary cell therapy candidate being developed to treat type 1 diabetes.
The two companies have been partners since 2018, when Lilly paid Sigilon $63 million for a licensing deal to develop cell therapes targeting type 1 diabetes and made an undisclosed equity investment.
Lilly's portfolio of diabetes products contributed more than half of its total revenue in 2022.