Eli Lilly (NYSE: LLY) announced Monday it has agreed to acquire privately held Merida Biosciences in an all-cash deal worth up to $2.875 billion, adding a genuinely distinct approach to autoimmune and allergic disease treatment to its growing immunology pipeline. The transaction includes an upfront cash payment plus additional milestone payments tied to future development and regulatory progress, though Lilly has not disclosed the specific breakdown between the two. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approval.