It’s time for your bi-weekly dose of M&A and corporate insights. In this edition, Partner Connie Phelps explores the flurry of vaccine developer acquisitions by drug company Eli Lilly and breaks down how smart M&A deals can inject new life into a growing business.
Pharmaceutical giant Eli Lilly and Company announced on May 26th that it is acquiring three vaccine development companies in a series of deals valued at $3.8 billion. These new additions are a continuation of Lilly’s 2026 growth efforts, which have seen the company spend more than $20 billion on acquisitions this year.
Lilly may be best known for its weight loss and diabetes drugs Zepbound and Mounjaro, which helped make it the first drugmaker to reach $1 trillion in market value in fall 2025. Following the company’s recent flurry of M&A activity, the drugmaker is seeking to diversify and tap into new markets. All three companies in the most recent acquisition announcement – Curevo Vaccine, LimmaTech Biologics AG, and Vaccine Company – are in the infectious disease space.
The deals with each company are independently structured as laid out in Lilly’s press release to investors:
- Lilly will acquire Curevo, and Curevo shareholders could receive up to $1.5 billion in cash, inclusive of an upfront payment and subsequent payment upon achievement of a specified milestone.
- Lilly will acquire LimmaTech for up to $780 million in cash, inclusive of an upfront payment and additional potential payments based upon the achievement of certain clinical and regulatory milestones.
- Lilly will acquire Vaccine Company, and Vaccine Company shareholders could receive up to $1.55 billion in cash, inclusive of an upfront payment and subsequent payments upon achievement of certain clinical and commercial milestones.
This trio of acquisitions follows the October 2025 hiring of former US FDA official Peter Marks as Lilly’s Senior Vice President of Molecule Discovery and Head of Infectious Diseases. Together, the acquisitions and leadership changes represent Lilly’s return to research and development for vaccines for viral and bacterial diseases for the first time in almost a decade.
What Can Businesses Learn From This?
Lilly’s recent $20 billion acquisition spree is not limited to vaccine research. Previously, Lilly announced the acquisition of companies focused on sectors such as oncology, cell therapy, sleep disorders, and more. So why is Lilly, a company that holds more than 60% of the booming GLP-1 market share, acquiring companies across so many markets? Following the multi-billion dollar boom from Zepbound and Mounjaro’s popularity, Lilly appears to be reinvesting in the company by acquiring established, fully operational companies already making strong progress on vaccine development in markets it had not focused on.
Soon, this approach will allow Lilly to reach new customers and establish itself as a multifaceted pharmaceutical company at the forefront of research and development, without needing to start from scratch in its new sectors. Acquisition can be a powerful tool that allows companies to quickly expand and boost their growth by tapping into the established success of an existing company in its target sector. With this in mind, Lilly’s $20 billion commitment to company growth is a great example of one of the many ways business success can fuel long-term growth.
Have questions about how M&A can help your company boost its growth? Contact M&A and Corporate lead Connie Phelps at cphelps@berenzweiglaw.com.