In a significant acquisition in the healthcare sector, the US companies Eli Lilly and Morphic announced on Monday a definitive agreement for the acquisition of Morphic by Eli Lilly. This announcement led to a massive increase in Morphic's stock by 75.06 percent to $55.74 in Monday trading on the NASDAQ. Eli Lilly's shares also saw a slight increase of 0.34 percent to $917.68 on the NYSE.

According to the press release from Morphic, Eli Lilly will pay 57 US dollars per Morphic share as part of the acquisition, which represents a premium of approximately 79 percent over Friday's closing price of 31.84 US dollars. The deal has a total volume of about 3.2 billion US dollars.

The boards of both companies have approved the transaction, and the Morphic board is also recommending that Morphic shareholders tender their shares under the takeover offer. The companies expect to complete the transaction in the third quarter of 2024.

Morphic, a biopharmaceutical company, develops oral integrin therapies for the treatment of severe chronic diseases. The current focus is on treating inflammatory bowel diseases with the molecule MORF-057, which is being studied in Phase 2 trials for ulcerative colitis and Crohn's disease. The acquisition by Eli Lilly aims to improve treatment outcomes for patients with inflammatory bowel diseases.

Morphic was always convinced that the enormous potential of MORF-057 could be optimized for the benefit of patients with IBD [inflammatory bowel disease] through the ideal strategic partner. Lilly brings unparalleled resources and commitment in the fields of inflammation and immunology," Morphic CEO Praveen Tipirneni is quoted as saying in the press release.

The strategic transaction underscores Eli Lilly's commitment to the field of gastroenterology, said Daniel Skovronsky, Chief Scientific Officer of Eli Lilly, according to a press release. 'Oral therapies could open up new possibilities for earlier intervention in diseases such as ulcerative colitis and also offer the potential for combination therapy to help patients with more severe disease courses,' Skovronsky continued.

The deal marks a significant step for both companies and could have far-reaching implications for the treatment options of inflammatory bowel diseases.