Lilly To Acquire Dermira In $1.1 Bln Deal - Quick Facts

(RTTNews) - Eli Lilly and Co. (LLY) agreed to acquire Dermira Inc. (DERM) for $18.75 per share, or about $1.1 billion, in an all-cash transaction.

The purchase price represents a premium of about 86 percent to the 60-day volume-weighted average trading price of Dermira's stock ending on January 9, 2020, the last trading day before the announcement of the transaction.

Lilly expects to close Dermira deal by the end of the first quarter of 2020.

Dermira's Board recommended its stockholders to tender their shares in the tender offer. In addition, certain Dermira stockholders, beneficially owning about 13 percent of Dermira's outstanding common stock, have agreed to tender their shares in the tender offer.

Dermira is a biopharmaceutical company that is developing new therapies for chronic skin conditions.

Lilly noted that it will provide an update to its 2020 financial guidance, including the expected impact from the acquisition of Dermira, as part of its fourth-quarter financial results announcement on January 30, 2020.