SAN DIEGO – San Diego’s life science industry did not have to wait long for its first big deal of 2026.
Ventyx Biosciences (Nasdaq: VTYX) announced Jan. 7 that it had entered into a definitive agreement to be acquired by Eli Lilly and Company (NYSE: LLY) in an all-cash buy for $1.2 billion.
Ventyx is a clinical-stage biopharma that is developing small molecule oral medications that focus on inflammatory diseases across cardiology, neurology and gastrology. The company’s expertise is in NLRP3 inhibitors – molecules that block the NLRP3 inflammasome – a cellular complex that triggers powerful inflammation by activating signaling proteins that act as messengers between cells, causing them to die.
“Our portfolio of class-leading NLRP3 inhibitors modulate residual and chronic inflammation that is now recognized as a major risk factor in a host of neuroinflammatory, cardiometabolic and cardiovascular diseases,” said Ventyx CEO Raju Mohan, Ph.D.
The Ventyx portfolio includes a monotherapy in Phase 2 studies that has shown to lower general inflammation in subjects with obesity and cardiovascular risks; a drug to treat recurrent pericarditis that is in a Phase 2 study that was recently expanded into Canada, EU and the UK in preparation for a global Phase 3; a drug to treat Parkinson’s disease that is in Phase 2a study; and two inflammatory bowel disease treatments, one for ulcerative colitis and another for Crohn’s disease, both in Phase 2 studies that have had positive preliminary results.
“There is increasing evidence that inflammation is a key driver of many chronic diseases,” said Daniel M. Skovronsky, M.D., Ph.D., chief scientific and product officer, and president of Lilly Research Laboratories, adding that the Ventyx pipeline “addresses a critical need for better treatment options across diseases mediated by chronic inflammation.”
Setup for Success
Prior to the M&A announcement with Lilly, Ventyx made some moves to set itself up for success in the new year. In early December the company brought on two high-profile advisors – Mirador Therapeutics CEO Mark McKenna and cardiovascular specialist at Mass General Brigham Heart & Vascular Institute Peter Libby, M.D.
McKenna – who prior to Mirador served as CEO of Prometheus Biosciences when it was acquired by Merck for $10.8 billion in 2023 – is now also a strategic advisor for Ventyx. Dr. Libby is serving the company as a clinical advisor.
In Ventyx’s third quarter earnings report in November, the company announced it had $192.6 million on hand that could fund operations into the first half of 2026.
A little over a year prior, the company received a $27 million strategic investment from France-based pharmaceutical company Sanofi (Nasdaq: SNY) for certain rights of negotiation for VTX3232 – Ventyx’s candidate for treating a range of neuroinflammatory diseases, including Parkinson’s and Alzheimer’s. The agreement did not restrict other pharma companies from buying out Ventyx shares.
Nearly Doubles Share Price
Eli Lilly’s $1.2 billion buyout of VTYX shares represents a price of $14 per share. Prior to the Jan. 7 announcement, shares of VTYX were trading at around $7.80. According to Eli Lilly,the purchase price represents approximately 62% of the 30-day volume-weighted average trading price of VTYX common stock ended on Jan. 5 of this year.
The acquisition was approved by the boards of both companies and is expected to close in the first half of this year.
Ventyx Biosciences
FOUNDED: 2018
FOUNDER AND CEO: Raju Mohan
HEADQUARTERS: San Diego
BUSINESS: Biopharmaceuticals
STOCK: Nasdaq: VTYX
EMPLOYEES: 80+ (across North America and Europe)
WEBSITE: ventyxbio.com
CONTACT: [email protected] or [email protected]
NOTABLE: Ventyx Biosciences founder Raju Mohan also founded Zomagen Biosciences, Oppilan Pharma Ltd., Escalier Biosciences, Vimalan Biosciences, and Akarna Therapeutics.
