On June 30, 2026, Centessa Pharmaceuticals (NASDAQ:CNTA) recorded its last trade at $40.50, reflecting a market valuation of the contingent value right (CVR) tied to Eli Lilly's (NYSE:LLY) acquisition at just 27.8 cents per dollar of its maximum $9 potential. This final price, recorded on June 24 UTC, marks the end of regular trading for Centessa's American Depositary Shares on the Nasdaq exchange.
The transaction, which closed before the market opened on June 24, offers Centessa shareholders $38 in cash plus a non-transferable CVR that could pay up to $9 per share based on regulatory milestones. Based on the last trade, the implied CVR value stood at $2.50, representing a significant discount to its maximum payout. The CVR's value is tied to U.S. Food and Drug Administration approvals of three narcolepsy and idiopathic hypersomnia drugs: cleminorexton and ORX142.
Eli Lilly shares traded at $1,217.86 around 10 a.m. EDT, down about 1.0%. The broader biotech sector saw modest declines, with the SPDR S&P Biotech ETF (NYSEARCA:XBI) down 0.3% and the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) slipping 0.1%.
Deal Mechanics and Trading Halt
Nasdaq confirmed that the merger was completed before the open on June 24, with Centessa's ADSs suspended from trading effective June 25. The last trade occurred after the after-hours session on June 23. Citi's depositary-receipt corporate-action page still listed the CNTA CUSIP as active as of Tuesday morning, with a merger notice dated June 16.
Centessa shareholders approved the merger on June 12, according to NasdaqTrader. The deal closed after a court order reached the Registrar of Companies on June 24, as disclosed in Centessa's 8-K filing. Investors holding shares at 6:00 p.m. UK time on June 23 are entitled to the $38 cash payment and the CVR.
CVR Details and Analyst Perspectives
The CVR's payout structure is tied to three FDA approval events: $2 if cleminorexton or ORX142 is approved for narcolepsy type 2 within five years of closing, $5 if either drug is approved for idiopathic hypersomnia on the same timeline, and an additional $2 if either drug receives its first FDA approval in any indication before January 1, 2030. Eli Lilly has stated there is no guarantee that CVR holders will receive any payment.
Oppenheimer analyst Kostas Biliouris noted in March that narcolepsy drug sales were approximately $2.5 billion, with growth potential as orexin agonists enter the market, as reported by Reuters. RBC Capital Markets' Leonid Timashev suggested that Eli Lilly's deal could benefit Alkermes (NASDAQ:ALKS), which is also developing orexin-based therapies.
Implications for Options Holders
The Options Clearing Corporation clarified that each existing CNTA ADS has been converted into the right to receive $38 in cash and one non-transferable CVR, but the CVR is not part of the adjusted options deliverable. Consequently, each option contract now delivers $3,800 in cash only, stripping away any exposure to the CVR. This distinction is critical for call buyers seeking upside, as the final share price now serves as a more direct indicator of the CVR's market value than the adjusted option terms.
Carole Ho, Eli Lilly's EVP and president of Lilly Neuroscience, stated after the deal closed, “Centessa has built a clinical portfolio with the depth to explore both, and Lilly intends to pursue that potential with urgency,” according to PR Newswire.
