Eli Lilly's $6.3B Centessa Deal Targets Breakthrough Narcolepsy Drug

Eli Lilly has agreed to buy Centessa Pharmaceuticals in a deal worth around $6.3 billion. The acquisition will expand Lilly's neuroscience portfolio with a focus on orexin receptor treatments. Investors responded positively, pushing both companies' share prices higher after the announcement. The deal centres on Centessa's pipeline of orexin receptor 2 (OX2R) agonists, including cleminorexton. This drug has shown promising results in Phase 2a trials, with analysts calling it a 'potential best-in-class' candidate. It targets narcolepsy and idiopathic hypersomnia, conditions where current treatments remain limited.

Lilly will pay $38 per share in cash upfront, a 40.5% premium over Centessa's 30-day average share price before the deal. Additional payments will depend on future milestones, reducing Lilly's financial risk. The transaction is expected to complete in the third quarter of 2026, subject to regulatory and shareholder approvals.

Centessa's focus on orexin biology has drawn industry attention, particularly as Takeda leads the field with oveporexton. That drug, an orexin agonist for narcolepsy type 1, has already gained FDA acceptance. Lilly's acquisition now positions it as a strong competitor in this emerging area. The deal strengthens Lilly's neuroscience pipeline while validating Centessa's research direction. Cleminorexton's progress and the milestone-based payments reflect confidence in its potential. If approved, the acquisition will mark Lilly's latest move to expand through targeted biotech takeovers.