Eli Lilly (NYSE: LLY) has agreed to acquire CoLucid Pharmaceuticals (NASD: CLCD) for $46.50 per share, or roughly $960 million, in an all-cash transaction representing a 33% premium to CoLucid's closing share price Tuesday. The pickup will build out Lilly's existing portfolio of pain management options by adding CoLucid's lasmiditan, an acute oral treatment for migraines. If the drug's remaining Phase III trial pans out later this year, submission of lasmiditan for US regulatory approval could occur in 2018.
Lasmiditan is an attempt to unseat triptans, a type of drug first brought to market in the 1990s, as the go-to option for treating migraines. In some ways, the deal will be a re-acquisition: Lilly first discovered lasmiditan before out-licensing it to CoLucid for development in 2005. With US approval, the drug could see sales in the neighborhood of $700 million, according to analysts cited by Reuters, with a projected price per patient of $1,748 per year compared to the generic sumatriptan, which ranges from $150 to $400 annually. Shares of CoLucid closed up 32.52% on the news Wednesday to end the trading day at $46.25 apiece.