Eli Lilly & Co. shares fell approximately 1.3% to $1,044.67 in extended trading Monday following the pharmaceutical giant's announcement of a significant acquisition. The company revealed plans to acquire Orna Therapeutics in a transaction valued at up to $2.4 billion, including milestone payments tied to clinical development progress.
Strategic Expansion Beyond Obesity Franchise
The acquisition represents Lilly's latest move to diversify its therapeutic pipeline beyond its successful diabetes and obesity drug portfolio. The deal comes as investors question whether the company can sustain growth momentum beyond its current blockbuster franchises amid increasing competition and pricing pressures.
Orna Therapeutics specializes in circular RNA technology combined with lipid nanoparticles, an approach that enables the body to produce therapeutic agents internally rather than through traditional laboratory methods. The company's lead program targets CD19, a marker already utilized in certain cell therapies. BMO Capital Markets analyst Evan Seigerman noted the technology could expand Lilly's presence in oncology and immunology but cautioned that it remains high-risk and unproven in large-scale studies.
In Vivo Cell Therapy Potential
Lilly executives framed the acquisition as addressing challenges associated with current cell therapy approaches. "Early autologous CAR-T studies have demonstrated cell therapy's promise for autoimmune diseases, but the complexity, cost, and logistics of ex vivo methods present significant challenges," said Francisco Ramírez-Valle, who leads immunology research and early clinical development at Lilly.
Orna CEO Joe Bolen asserted that their platform could "unlock in vivo CAR-T therapies" for a broad range of autoimmune conditions. Traditional CAR-T therapies require extracting, modifying, and reinfusing a patient's cells—a process that is both time-consuming and expensive.
Investors are now watching for several key developments: potential adjustments to Lilly's 2026 financial forecasts resulting from the acquisition, the timeline for Orna's lead program entering clinical trials, and upcoming regulatory decisions. The FDA is scheduled to rule on orforglipron, Lilly's oral obesity drug candidate, in April.
