The acquisition centers on Merida’s proprietary technology, which targets pathogenic autoantibodies directly. Unlike conventional treatments that dampen the entire immune system, this approach aims to preserve normal immune function while removing the specific agents responsible for conditions like Graves' disease and thyroid eye disease. Merida’s lead candidate, MER511, has already produced initial Phase 1 data demonstrating a reduction in thyroid-stimulating antibodies with a favorable safety profile.

Beyond its lead program, Merida maintains a pipeline of preclinical assets targeting food allergies, asthma, and chronic spontaneous urticaria, as well as kidney conditions like membranous nephropathy. Francisco Ramírez-Valle, senior vice president of immunology research at Lilly, noted that the technology offers potential applications across a broad range of antibody-driven diseases. The acquisition is expected to close in the fourth quarter of 2026, pending standard regulatory approvals.