Eli Lilly strikes USD7.8B deal to acquire sleep disorder specialist Centessa Pharmaceuticals

UK—Eli Lilly has agreed to acquire UK-based neuroscience company Centessa Pharmaceuticals in a deal valued at up to USD7.8bn, cementing its position as one of the most active dealmakers in the pharmaceutical industry this year.

Under the terms of the agreement, Lilly will pay USD 38 per share — a 37% premium over Centessa’s NASDAQ closing price of USD 27.58 on March 30.

Beyond the initial payment, Centessa shareholders are set to receive an extra USD9 per share in contingent value rights (CVR), which could increase the total deal value by USD 1.5 billion.

The release of that additional sum depends on whether Centessa’s lead drug candidate, cleminorexton, clears three specific regulatory milestones.

A drug built around the science of sleep

Cleminorexton — formerly known as ORX750 — has already shown promising results in Phase II clinical trials targeting a range of sleep-wake disorders, including narcolepsy type 1, narcolepsy type 2, and idiopathic hypersomnia.

To unlock the full CVR payout, the US Food and Drug Administration (FDA) must approve the drug for narcolepsy type 2 or idiopathic hypersomnia within five years of the deal closing, along with approval for at least one other indication before 2030.

Centessa’s pipeline centres on orexin receptor 2 (OX2R) agonists—proteins that play a key role in regulating the sleep-wake cycle.

In addition to cleminorexton, the company’s second clinical candidate, ORX142, produced encouraging improvements in sleep latency during a Phase I trial in healthy volunteers in November 2025.

Analysts at Citi responded positively to the news, noting that the acquisition could meaningfully strengthen Lilly’s neuroscience portfolio, given the sizeable combined market across the three targeted conditions.

Carole Ho, president of Lilly Neuroscience, explained the strategic rationale clearly: “Orexin receptor biology represents one of the most compelling mechanistic opportunities in neuroscience as a direct intervention on the master switch of the sleep-wake cycle.

He noted that Centessa has assembled a portfolio with the breadth and depth to improve wakefulness across a broad array of indications.

A growing market for sleep disorder treatments

The commercial opportunity underpinning this deal is substantial.

According to GlobalData, the number of diagnosed narcolepsy cases across the 16 major pharmaceutical markets is expected to surpass 760,000 by 2029.

Those markets span Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, South Africa, South Korea, Spain, the UK, and the US.

Jazz Pharmaceuticals’ Xyrem (sodium oxybate) currently ranks among the top-selling treatments for excessive daytime sleepiness in patients with narcolepsy, underscoring the significant revenue potential in this therapeutic space.

Lilly’s dealmaking momentum in 2026

The Centessa acquisition adds to a string of high-value agreements Lilly has pursued in 2026.

In January, the company agreed to acquire Ventyx Biosciences, a specialist in inflammatory diseases, for USD 1.2 billion.

February brought two further moves: a USD2.4 billion acquisition agreement with Orna Therapeutics and an USD8.8 billion collaboration deal with China-based Innovent to develop therapies for cancer and immune disorders.

Lilly has also entered multi-billion-dollar partnerships with Seamless Therapeutics.