Eli Lilly announced this week a definitive agreement to acquire Sigilon, a biotech company focused on developing therapies for chronic diseases.
Under the agreement, Lilly will purchase all outstanding shares of Sigilon for $14.92 per share in cash, totaling approximately $34.6 million at the closing. Additionally, each share will include contingent payments of up to $111.64 per share in cash, potentially reaching a total consideration of up to $126.56 per share in cash. Contingent payments are subject to regulatory milestones and may provide additional compensation for CVR holders.
Since 2018, Eli Lilly and Sigilon have been collaborating on the development of encapsulated cell therapies, including SIG-002, to address type 1 diabetes. As part of the collaboration, Lilly obtained an exclusive global license for the drug by paying $63 million. With the acquisition, Eli Lilly will gain control over SIG-002, which is currently progressing toward IND-supporting studies.
Sigilon Therapeutics, established by Flagship Pioneering in conjunction with MIT's Daniel Anderson, utilizes its proprietary Shielded Living Therapeutics platform to develop non-viral engineered cell-based therapies. These therapies are designed to produce therapeutic molecules or functions that may be lacking in patients with conditions such as diabetes.