Eli Lilly to Acquire Centessa Pharmaceuticals for $38 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Centessa Pharmaceuticals' shares surged 48.11% in pre-market trading, reaching a 52-week high of $40.50.
Eli Lilly has entered into a definitive agreement to acquire Centessa Pharmaceuticals for $38.00 per share in cash, reflecting a strong endorsement of Centessa's promising drug pipeline. Additionally, shareholders will receive a contingent value right that could yield an extra $9.00 per share if certain milestones are met, raising the total potential value to $47.00 per share. This acquisition is expected to enhance the commercialization of Centessa's lead candidate, cleminorexton, which has shown best-in-class potential in clinical trials for narcolepsy.
The acquisition news has generated significant market optimism, driving Centessa's stock price to a new high as investors anticipate the benefits of the deal and the future of its drug development.
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Analyst Views on CNTA
Wall Street analysts forecast CNTA stock price to fall
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 40.500
Low
27.00
Averages
38.75
High
62.00
Current: 40.500
Low
27.00
Averages
38.75
High
62.00
About CNTA
Centessa Pharmaceuticals plc is a clinical-stage pharmaceutical company. The Company is developing a new class of potential therapies within its orexin receptor 2 (OX2R) agonist program for the treatment of excessive daytime sleepiness (EDS), impaired attention, cognitive deficits, fatigue and other symptoms across neurological, neurodegenerative and neuropsychiatric disorders. It also has an early-stage immuno-oncology program focused on its LockBody technology platform. Its OX2R agonist pipeline includes ORX750, its advanced OX2R agonist development candidate, and ORX142, ORX489 and OX2R agonists in preclinical development. Its ORX750, an investigational, orally administered, highly potent and selective OX2R agonist, is in a Phase IIa study of participants with narcolepsy type 1 (NT1), NT2 and idiopathic hypersomnia (IH). ORX142 is the second OX2R agonist development candidate being advanced for the treatment of neurological and neurodegenerative disorders and other symptoms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Positioned as a Top Stock for Next 3 Years
- Stock Price Upside: Eli Lilly has seen a roughly 6% increase in stock price over the past 30 days, with the market anticipating more than a 13.6% upside, indicating strong investor confidence in its future performance.
- Analyst Price Target Increases: Leerink analyst David Risinger raised the price target for Eli Lilly shares from $1,119 to $1,232 while maintaining an Outperform rating, reflecting recognition of the company's growth potential.
- Acquisition of Centessa Pharmaceuticals: On June 24, Eli Lilly completed its acquisition of Centessa Pharmaceuticals, a company focused on developing new medicines for narcolepsy and other sleep disorders, resulting in a stock price increase of approximately 1.5%, showcasing positive market reaction to its strategic direction.
- Focus on Neuroscience: Management highlighted that Centessa's research centers on orexin receptor 2 agonists, which regulate wakefulness and sleep stability, indicating Eli Lilly's strong push into neuroscience and sleep medicine, potentially opening up broader market opportunities.
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- Shareholder Compensation Structure: Under the agreement, Centessa shareholders will receive $38.00 in cash per share along with a non-transferable contingent value right (CVR) worth up to $9.00, incentivizing shareholder support for the transaction and ensuring future milestone achievements.
- Transaction Timeline: The completion of the transaction and scheme implementation is expected to occur upon the court order being delivered to the Registrar of Companies on June 24, 2026, providing a clear timeline for stakeholders and ensuring smooth execution of the deal.
- Market Reaction: Centessa's American Depositary Shares (ADSs) are expected to trade for the final time on Nasdaq on June 23, 2026, with trading suspension before market opening on June 24, reflecting positive market sentiment regarding the acquisition.
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- Acquisition Strategy Shift: Lilly has already announced acquisition amounts exceeding last year's total of $4 billion, indicating a strategic shift from early-stage assets to more promising experimental drugs aimed at enhancing long-term growth.
- Market Position Consolidation: With a market capitalization of approximately $1 trillion, Eli Lilly has become the first pharmaceutical company to join the trillion-dollar club, reflecting its leadership in the industry and confidence in future investments.
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- Stock Price Upside: Eli Lilly has seen a roughly 6% increase in stock price over the past 30 days, with the market anticipating more than a 13.6% upside, indicating strong investor confidence in its future performance.
- Analyst Price Target Increases: Leerink analyst David Risinger raised the price target for Eli Lilly shares from $1,119 to $1,232 while maintaining an Outperform rating, reflecting recognition of the company's growth potential.
- Acquisition of Centessa Pharmaceuticals: On June 24, Eli Lilly completed its acquisition of Centessa Pharmaceuticals, a company focused on developing new medicines for narcolepsy and other sleep disorders, resulting in a stock price increase of approximately 1.5%, showcasing positive market reaction to its strategic direction.
- Focus on Neuroscience: Management highlighted that Centessa's research centers on orexin receptor 2 agonists, which regulate wakefulness and sleep stability, indicating Eli Lilly's strong push into neuroscience and sleep medicine, potentially opening up broader market opportunities.
See More
Centessa Pharmaceuticals Acquisition by Eli Lilly Approved by Court
- Acquisition Approval: The High Court of Justice in England and Wales has sanctioned Eli Lilly's acquisition of Centessa Pharmaceuticals for approximately $7.8 billion, marking a significant legal milestone that is expected to enhance Lilly's market position in the biopharmaceutical sector.
- Shareholder Compensation Structure: Under the agreement, Centessa shareholders will receive $38.00 in cash per share along with a non-transferable contingent value right (CVR) worth up to $9.00, incentivizing shareholder support for the transaction and ensuring future milestone achievements.
- Transaction Timeline: The completion of the transaction and scheme implementation is expected to occur upon the court order being delivered to the Registrar of Companies on June 24, 2026, providing a clear timeline for stakeholders and ensuring smooth execution of the deal.
- Market Reaction: Centessa's American Depositary Shares (ADSs) are expected to trade for the final time on Nasdaq on June 23, 2026, with trading suspension before market opening on June 24, reflecting positive market sentiment regarding the acquisition.
See More
Pharmaceutical Giants Accelerate Acquisitions to Offset Patent Cliffs
- Accelerated Acquisition Activity: In 2026, global biopharma M&A deal value reached $106 billion across 201 transactions, reflecting a strong acquisition appetite among pharmaceutical companies facing patent expirations, with projections suggesting total deal value could exceed $250 billion for the year, marking the sector's best performance since the pre-pandemic peak in 2019.
- Increasing Deal Sizes: The average deal size has climbed to $527.3 million in 2026, up from $365 million in 2025, indicating that pharmaceutical firms are focusing on acquiring high-value assets to enhance their product portfolios and competitive positioning in the market.
- Strategic Acquisition Preferences: Companies are shifting towards strategic “bolt-on” acquisitions in the $1 billion to $5 billion range rather than large leveraged buyouts or mega-mergers, enabling them to quickly supplement near-commercial products while also investing in early-stage assets to access innovative technologies.
- Major Deal Examples: The five largest M&A transactions in 2026 include Sun Pharmaceutical's $11.75 billion acquisition of Organon, Gilead's $7.8 billion purchase of Arcellx, Merck's $6.7 billion acquisition of Terns, Eli Lilly's $7.8 billion deal for Centessa, and Biogen's $5.6 billion acquisition of Apellis, highlighting the industry's consolidation trend and demand for new technologies.
See More
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- Strategic Shift in Acquisitions: Eli Lilly has announced plans to spend over $10 billion on eight acquisitions in 2023, with potential total spending reaching $25 billion, reflecting the company's strong financial position and desire for future growth in drug development.
- Significant Market Capitalization Growth: The company's market capitalization has surged to approximately $1 trillion, up from $190 billion in 2021, making it the first healthcare company to join the trillion-dollar club, highlighting its leadership position and investor confidence.
- Diversification of Acquisition Targets: Lilly is broadening its acquisition focus beyond oncology, neuroscience, and cardiometabolic health to include three vaccine companies, indicating its intent to explore new areas and enhance overall business capabilities.
- Future Growth Potential: Executives at Lilly have stated that future acquisitions will not have arbitrary spending limits, emphasizing the importance of scientific appeal and potential patient impact, which showcases the company's ambitious goals in drug development and market expansion.
See More
Eli Lilly Accelerates Acquisition Strategy Fueled by GLP-1 Drug Success
- Financial Strength Boost: Eli Lilly is leveraging the financial strength from its GLP-1 drugs like Mounjaro and Zepbound to plan over $10 billion in acquisition spending in 2023, showcasing the company's robust growth potential in the pharmaceutical industry.
- Acquisition Strategy Shift: Lilly has already announced acquisition amounts exceeding last year's total of $4 billion, indicating a strategic shift from early-stage assets to more promising experimental drugs aimed at enhancing long-term growth.
- Market Position Consolidation: With a market capitalization of approximately $1 trillion, Eli Lilly has become the first pharmaceutical company to join the trillion-dollar club, reflecting its leadership in the industry and confidence in future investments.
- Diversified Investment Directions: In addition to focusing on oncology, neuroscience, cardiometabolic health, and immunology, Lilly plans to acquire vaccine companies, demonstrating its intent to expand into new areas and further strengthen its market competitiveness.
See More
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- Legal Investigation Launched: Halper Sadeh LLC is investigating LiveRamp Holdings, Inc. (NYSE: RAMP) regarding its sale to Publicis Groupe at $38.50 per share, potentially infringing on shareholder rights.
- Merger Review: The merger between NextEra Energy, Inc. (NYSE: NEE) and Dominion Energy, Inc. will result in NextEra shareholders owning approximately 74.5% of the combined entity, prompting Halper Sadeh LLC to assess the transaction's compliance.
- Pharmaceutical Sale Inquiry: Centessa Pharmaceuticals plc (NASDAQ: CNTA) is being sold to Eli Lilly for $38.00 in cash per share plus up to $9.00 in contingent value rights, with Halper Sadeh LLC reviewing whether this transaction aligns with shareholder interests.
- Financial Transaction Scrutiny: Green Dot Corporation (NYSE: GDOT) is selling for $8.11 in cash and 0.2215 shares of a new publicly traded bank holding company, leading Halper Sadeh LLC to investigate if the terms restrict superior competing offers.
See More
